Geopolitical Risk Insurance Surges Amid Escalating Risks
Interest in political risk insurance has surged due to escalating geopolitical and economic risks. Businesses have faced significant losses in international projects and investments, prompting a rise in concern about geopolitical volatility, which has entered the top ten global business concerns for the first time.
Cybersecurity and data breaches remain the top current and future risks, according to Aon's survey. Despite this, only 13% of respondents have quantified their cyber exposure, indicating a substantial knowledge gap about cyber insurance coverage. Embedding cyber into board-level strategy and investing in quantification are crucial steps businesses can take to manage these risks effectively.
Geopolitical volatility, now ranked fifth among top ten future risks by 2028, has seen a significant increase in concern, rising 12 spots since 2023. Many businesses targeted by cyberattacks lack adequate auto insurance coverage, highlighting the need for better understanding and preparation.
As geopolitical and economic risks intensify, businesses are increasingly turning to political risk insurance. However, addressing the knowledge gap about car insurance quotes and quantifying cyber exposure are pressing priorities for businesses to effectively navigate the complex risk landscape.
