A survey by Beazley, a leading specialist insurer, found that 32% of US business leaders consider political risk to be the top threat they face this year.
Additionally, 25% of U.S. business leaders feel unprepared to manage political risks and are similarly concerned about the threat of war and terrorism. The findings are part of Beazley’s latest Risk & Resilience report, “Geopolitical Risk Snapshot 2024,” which explores the global challenges businesses are facing during this turbulent election year.
Beazley’s survey of over 3,500 global business leaders revealed that 30% consider political risk as the greatest threat, with the number increasing to 32% in the US and decreasing to 24% in Canada. In a climate of heightened global tension, 36% of executives worldwide believe they are operating in a high-risk environment, a figure that rises to 38% among Canadian leaders.
Statistics in brief
- 65% of North American business leaders fear this election year will impact their ability to trade internationally
- • With polarizing presidential elections taking place in the second half of 2024, 32% of US business leaders said political risk was the number one threat they face.
- • At the same time, a quarter (25%) of US business leaders surveyed feel unprepared to deal with the political risks they face.
- • 25% of US business leaders reported feeling unprepared against the threat of war and terrorism.
The report highlights concerns about the potential for political violence during the U.S. presidential election in the fall. A quarter of US and 33% of Canadian business leaders admit they are not fully prepared for the threat of political violence. Many still recall the events on Capitol Hill in January 2021 and the nationwide riots that followed, causing apprehension that the upcoming election could lead to similar unrest.
Businesses across all industries are susceptible to damage from strikes, riots, and civil disturbances, underscoring the importance of proactive risk management strategies to navigate the risks associated with this election year.
Speaking about the results, Chris Parker, Head of Terrorism and Deadly Weapons Protection, Beazley said: “In this ‘year of the election’, businesses around the world are facing significant political uncertainty. While previously some property insurance policies gave firms some cover from the risks associated civil unrest, property carriers have begun to exclude this risk, proving the importance of having standalone political violence and strikes, riots, and civil commotion cover.”
