A region in transition: A political risk analysis of the Middle East and North Africa

28 February 2011

With political protests occurring across the Middle East and North Africa, it is expected that the insurance market will respond in a comprehensive reappraisal of political risk - which could increase premiums for political risk and violence cover for businesses.

The latest CII thinkpiece written by Adrian Lewers, head of political risk at Beazley, takes a look at the political risks facing businesses operating in emerging markets and if the current condition in many MENA countries may mark the start of a new era of unrest in the region.

The current political unrests in MENA could lead to investment losses and business interruption due to general strikes and curfews and this will be felt across London's political risk market. Insurers need to be able to analyse the intensity of political risks and its developments between countries to avoid discouraging international investment and weakening economic activity.

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