Politics is on the agenda once more, with threats against individuals or client assets accounting for 26% of all incidents reported by clients to Alert:24 in 2024, according to Willis, a WTW business, in its latest Crisis Management Annual Review. Emergency political repatriations and kidnappings for ransom each made up 21% of reported incidents.
A record number of elections took place in 2024, with incumbents in many leading democracies experiencing significant declines in vote share. Nearly 80% lost ground compared to previous elections, largely due to economic challenges and concerns over inflation. Some incumbents retained power by forming minority coalitions, while others were defeated. The year was marked by protests and political unrest in both democratic and authoritarian states.
Political instability, rising populism, and socio-economic tensions are expected to contribute to further security challenges in 2025.
Organizations with comprehensive risk transfer and mitigation strategies—including kidnap and ransom (K&R) coverage, political risk insurance, and specialized security advisory services—will be better positioned to navigate an increasingly volatile environment, the company said.
Regional trends in crisis incidents also point to evolving insurance considerations. In Latin America, where organized crime and express kidnappings are on the rise, companies face heightened liability exposures. The increase in reported incidents in Haiti - accounting for 20% of events in Latin America - further signals the necessity for crisis response insurance and tailored coverage in high-risk jurisdictions.
Meanwhile, Africa led all regions with 27% of total reported incidents, reinforcing the demand for risk mitigation solutions for businesses operating in politically unstable environments.
Despite a 21% decrease in overall client incident notifications in 2024, major conflicts, such as the war between Israel and Hamas and the Sudanese Civil War, continue to fuel demand for insurance and security advisory services. Businesses with operations in affected regions must evaluate their current policies, including business interruption, political risk, and crisis response insurance, to ensure adequate coverage.
Jo Holliday, global head of crisis management at WTW, emphasized the role of insurance and proactive risk management in maintaining business resilience. “We continue to see clients impacted by a wide range of incidents, affecting both people and physical assets. Political instability is likely to persist, making comprehensive risk assessment and crisis management essential for businesses. Combining insight and analytics with tailored insurance solutions will be key to navigating an increasingly complex risk landscape.”
