Rising Demand for Political Risk Insurance Amidst Surging Global Elections
Published on February 15, 2024 • Reinsurance News
Chaucer, a re/insurance company owned by China Re, forecasts that 2024 will bring heightened political risk due to a surge in scheduled elections worldwide.
This escalation raises concerns about potential political upheaval, prompting an increased demand for political risk insurance among businesses globally as they seek to protect themselves. Consequently, the need for reinsurance is also expected to rise.
Chaucer’s analysis reveals an 18% increase in the number of national elections expected in 2024, increasing from 55 in 2023 to 65 in 2024.
Countries with elections planned for 2024 collectively represent a GDP of $44.6 trillion, comprising 44% of the global GDP. This is a substantial increase compared to the previous year when the GDP of election-holding countries amounted to $12.6 trillion, representing 12.4% of global GDP.
Jonathan Bint, Senior Underwriter and Analyst at Chaucer, emphasises the sharp increase in political risk insurance driven by the high voter turnout expected in this year’s elections. He explains, “businesses around the world will be moving to safeguard against the cancellation of government contracts or financial losses arising from civil unrest or political violence.”