Civil unrest in affluent democratic countries—manifesting as strikes, riots, and civil commotion (SRCC)—is emerging as a growing source of risk for the global insurance sector. Risks that were largely negligible a decade ago have translated into over $8 billion in insured losses between 2020 and 2024, according to analysis by the reinsurance firm Howden Re. While 2025 saw relatively moderate claims, experts warn that losses could surge in 2026, particularly in the United States.
Analysts point to a combination of social inequality, political polarisation, and policy instability as key drivers of escalating protest risks in wealthy nations. Research from the Pew Research Center indicates that many citizens in the Western world no longer anticipate generational wealth growth, fuelling discontent. Early data from Verisk Maplecroft shows that the United States ranks highest among Western democracies—and fifth globally—for SRCC exposure, with France in seventh place. These indices factor in not only the likelihood of unrest but also the potential costs of property reconstruction.
High-Risk Countries by SRCC Index
| Country | Global Rank | Notes |
|---|---|---|
| United States | 5 | Highest risk among Western democracies |
| France | 7 | High polarisation and protest activity in Europe |
| Pakistan | Below US | Emerging market risks |
| Bangladesh | Below US | Politically and socially sensitive |
| India | Below US | Large market with intermittent unrest |
Traditionally, SRCC coverage has been bundled with other insurance policies. However, rising risk levels have prompted insurers to offer standalone coverage, particularly for retail assets such as shopping malls and urban commercial properties, which now face higher premiums. In 2024, Lloyd’s of London assigned SRCC a distinct underwriting code, and in 2025, Verisk released the first US-focused SRCC catastrophe model.
The broader insurance landscape is also heightening concern. The Allianz Risk Barometer 2026 lists “political risk and violence” as the seventh most pressing global threat, immediately after war. Western Europe and the United States are highlighted as regions of highest exposure, where large-scale protests and property damage are increasingly frequent.
Experts caution that SRCC losses have reached a magnitude where single events exceeding $5 billion in damage are no longer inconceivable, in some cases surpassing natural disaster-related losses. This underscores the growing importance of robust corporate risk management, sophisticated political risk modelling, and comprehensive insurance coverage as prerequisites for sustainable business operations.