France and Germany witness substantial increases in civil unrest incidents, with France experiencing a staggering 55% surge and Germany reporting a 13% rise in social unrest during the first quarter of 2023 compared to the same period in 2022, according to a report by specialty re/insurance group Chaucer.
The study conducted by Chaucer also reveals a global rise in civil unrest incidents, with figures climbing from 29,535 in the previous year to 30,376 in the past year, indicating a 3% increase worldwide.
The developed world, in particular, has been grappling with double-digit inflation and rising interest rates, resulting in a sharp decline in real incomes and heightened public discontent.
Eurozone countries have faced mounting civil unrest over the past year, exacerbated by record-high annual inflation of 8.4%.
Concerns loom over the translation of public anger towards the rising cost of living into widespread protests, leading to a surge in demand from corporations seeking insurance coverage for potential damages arising from strikes, riots, and civil commotion (SRCC) incidents.
However, insurers have responded to the long-term trend of increasing civil unrest, which has been observed since the Global Financial Crisis, by removing coverage for SRCC damages from standard insurance policies.
This policy change has created a coverage gap that specialist (re)insurers have stepped in to address. The demand for such coverage has been particularly strong among international brands in the retail, leisure, and financial services sectors.
Craig Curtiss, Senior Class Underwriter for Political Violence & Crisis Management at Chaucer, emphasised the direct correlation between the escalating cost of living and the surge in civil unrest.
Curtiss noted that Europe, especially France, has witnessed an increased trend of unrest over the past 12 months, with mass protests gripping the nation. Furthermore, even traditionally stable economies have been impacted by public protests, reflecting the widespread discontent.
In Germany, the number of social unrest incidents rose by 13% in the first quarter of 2023 compared to the same period in 2022, totaling 249 incidents, up from 161.
The country has experienced a sharp increase in energy prices following the invasion of Ukraine, adding to the grievances fuelling public unrest.
Meanwhile, in France, the contentious issue of pension reform has contributed to a staggering 55% surge in social unrest incidents, reaching 249 cases in the first quarter of 2023, up from 161 in the corresponding period of the previous year.
Protests involving hundreds of thousands of demonstrators have taken over the streets of Paris, while coordinated strikes have resulted in widespread disruptions, including cancellations in public transportation services.
