Clements Worldwide Risk Index Points to Critical Risks to Global Growth
LONDON, September 22, 2016 /PRNewswire/ --
Business interruption is the leading cause of losses for companies, multinational organisations and NGOs operating outside the US, according to a new survey by leading international insurance broker Clements Worldwide. The Clements Worldwide Risk Index also shows that property damage and general liability are the close second and third largest sources of financial losses among respondents.
In the face of these risks, 35 per cent of organisations indicate they may delay global expansion, up from 27 per cent in the Winter/Spring 2016 Edition of the index.
"We are aware of the concerns regarding global expansion and are working with an increasing number of companies to access the right coverage abroad based on where they working and their operational focus," said Chris Beck, President of Clements Worldwide. "As organisations are reconsidering their coverage, they are coming to terms with the fact that man-made risks like political violence and cyber-attacks are as important as environmental risks like weather and catastrophic perils in terms of their potential threat to global operations in a way that threatens sustained growth."
Increased risks of political violence and terrorism are also highlighted, with 25 per cent of respondents citing terrorism as their top concern. The top concern among all respondents was fears related to lack of protection against cyber-attacks and subsequent cyber liability, which topped the list at 26 per cent.
In addition to a global risk overview, The Clements Worldwide Risk Index provides new analysis of the risks faced by three key global sectors: Non-Governmental Organisations (NGOs), Government Agencies & Contractors, and International Schools.
While NGOs and International Schools reported findings consistent with the global results of this, the top losses reported by respondents affiliated with Government Agencies and Contractors show troubling differences. Forty-three percent of these respondents identified terrorism as the top source of losses. Cyber liability was second, at 36 per cent. Political/labour unrest followed closely behind at 33 per cent. In line with previous surveys, terrorism still remains a top concern as reported by 39 per cent of these respondents compared with 25 per cent of overall respondents.
"No single organisation can stop the increased threats to global operations," added Beck. "The Clements Worldwide Risk Index does make clear that organisations can do more to reduce the risks posed by particular threats like political violence, kidnap and ransom, and cyber threats. Creative and proactive risk management, including the right insurance, is a critical factor in the continued growth of multinational organizations and the entire global economy."
Clements Worldwide is a leading insurance provider for expatriates and international organisations. Founded in 1947, Clements offers international car, property, term life, disability, health, specialty, and high-risk insurance in over 170 countries. With offices in Washington, D.C., London, and Dubai, Clements delivers comprehensive and customised coverage, superior customer service, and unparalleled claims response. For more information:
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