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Anger over growing social inequality and high cost of living, foundering faith in governments and institutions, and increasingly polarised politics, together with a rise in activism and environmental concerns, are the main factors expected to fuel ongoing incidences of strikes, riots, and civil commotion (SRCC) around the world, according to a new report from insurer Allianz Global Corporate & Specialty (AGCS).

The heightened SRCC risk environment means businesses need to remain vigilant about the different threats such activity can pose, said AGCS. In addition to buildings or assets suffering costly material damage, operations can be severely disrupted, resulting in significant loss of income.

Strikes, riots, and civil commotion racked up $12 billion of losses for businesses and institutions from just six major incidents in recent years. Insurance claims from South African riots in July 2021 cost $1.9 billion.

Civil unrest risks rose in over 50% of countries between Q2 and Q3 2022, according to the Verisk Maplecroft Civil Unrest Index. Since 2017, more than 400 significant anti-government protests have erupted worldwide. “Political risks and violence” ranks top-three risks in Burundi, Madagascar, and Nigeria, and fourth in South Africa.

AGCS said businesses should evaluate best practices and policies around preparing office locations and employees for the impact of potential civil unrest.