Insurers re-evaluating coverage and rates in wake of political turmoil: Willis

Companies operating in politically volatile regions may soon find they are unable to retain sufficient insurance coverage, or that their existing policies may not necessarily cover the type of political unrest occurring in the Middle East, North Africa and Asia, Willis warns.
In a report, Mind the Gap, Willis says insurers currently offering protection against political risk and terrorism are re-evaluating the terms and prices of their policies to reflect the ongoing turmoil in the Middle East and heightened civil unrest unfolding in other regions of the world.
Willis said it is still unclear whether insurer appetites or abilities going forward will become more restricted by the application of country or territory limits.
“What shocks a lot of people about the latest wave of political unrest is the unpredictability around where it will happen next, and the fact that today’s stable or ‘investor friendly’ regime can very easily become tomorrow’s hot spot,” said Bob Peilow, Willis Global Solutions’ managing director.
“This is why it is so important that companies have the right coverage in place should the unthinkable happen.”