This Just In ...
According to the 2020 Marsh Political Risk Map, of the nine stressors affecting risk in the United States, only the risk of terrorism declined between January and July of this year:
Strikes, Riots & Civil Commotion: 4.4 > 5.1.
Terrorism: 5.0 > 4.8.
War & Civil War: 2.1 > 2.7.
Country Economic Risk: 2.4 > 4.0.
Currency Inconvertibility & Transfer Risk: 1.5 > 1.6.
Sovereign Credit Risk: 1.0 > 1.1.
Expropriation: 2.0 > 2.0 =.
Contractual Agreement Repudiation: 4.3 > 4.4.
Legal & Regulatory Risk: 2.4 > 2.5.
In addition to the U.S., the report analyzes political risk in 196 other countries.
The report attributes much of the world-wide increase in political risk to the effects of the COVID-19 pandemic. According to the report, the pandemic has introduced "new dynamics and accelerat[ed] existing geopolitical megatrends, such as trade protectionism and the transition to a multipolar world order."
With respect to the U.S., the report says, "The deepening Sino-American rivalry has accelerated since the onset of COVID-19. The politicization of trade and investment relationships has extended to public health, with leaders in both countries routinely blaming the other for the pandemic."
"Cooperation between China and the US on the pandemic has been weak, and tensions have risen over Hong Kong SAR, Taiwan, and the South China Sea. Our expectation that tech firms will be increasingly caught in the crossfire is playing out, while countries find themselves under geopolitical pressure to choose sides."
[return to top]
In this issue:
This Just In...
Impact of COVID-19 on Property and Liability Insurance
Who Doesn't Need Professional Liability Insurance These Days?
Why Almost Every Business Needs Additional Insured Coverage
How the Pandemic Could Change the Future of Work
The information presented and conclusions within are based upon our best judgment and analysis. It is not guaranteed information and does not necessarily reflect all available data. Web addresses are current at time of publication but subject to change. SmartsPro Marketing and The Insurance 411 do not engage in the solicitation, sale or management of securities or investments, nor does it make any recommendations on securities or investments. This material may not be quoted or reproduced in any form without publisher’s permission. All rights reserved. ©2020 The Smarts Publishing. Tel. 877-762-7877. www.smartspublishing.com