Marsh Specialty’s 2024 Political Risk Report has highlighted how long-term uncertainty is stemming from macroeconomic competition and geopolitical insecurity, which is set to create even greater economic divergence between sectors and economies this year.
According to the report, a record number of voters heading to the polls this year are likely to focus on internal economic and international security concerns.
Meanwhile, the weaponisation of AI by non-state groups, adversarial states, politicians, and individuals to amplify misinformation and disinformation will reportedly further exacerbate policy uncertainty and political violence risks for organisations and investors.
The report also noted that fragile macroeconomic conditions in the wake of the upcoming 2024 elections will be “further stressed” by high debt levels among companies and governments.
This, combined with potential weak growth in advanced geographies, could disrupt governmental investment policies and contribute to heightened credit, supply chain, and business interruption risks for organisations.
However, despite continued volatility and uncertainty, Marsh noted that there are substantial global growth opportunities that organisations may benefit from, if these risks are managed effectively.
Robert Perry, Global Political Risks & Structured Credit Leader, Marsh Specialty, commented, “The outcomes of the elections taking place this year are set to direct the course of global events for the next decade and beyond.
“While the world feels like a riskier place in such a time of such macroeconomic and geopolitical uncertainty, businesses that effectively manage and transfer risks in this rapidly changing environment will be well-positioned to seize on future growth opportunities and continue to thrive.”
