Civil unrest—strikes, riots and civil commotion (SRCC)—in affluent democratic countries has become an increasingly significant source of risk for the insurance industry. Risks that were almost negligible a decade ago have, between 2020 and 2024, resulted in insured losses exceeding $8 billion, according to an analysis by reinsurance firm Howden Re. While claims were comparatively lower in 2025, there are concerns that such losses, particularly in the United States, could rise again in 2026.
Analysts note that a combination of social inequality, political polarisation, and policy instability has heightened the risk of protests in wealthy nations. Data from the Pew Research Center indicates that many citizens in the Western world no longer expect intergenerational wealth growth, fuelling discontent. First-quarter data from Verisk Maplecroft shows that the United States tops Western democracies in terms of SRCC risk and ranks fifth globally, with France in seventh place. These indices consider not only the likelihood of unrest but also the costs associated with property reconstruction.
High-Risk Countries (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 risk |
| Bangladesh | Below US | Political and social sensitivity |
| India | Below US | Large market, sporadic unrest |
SRCC coverage is typically bundled with other insurance policies. However, rising risks have led many firms to take out separate cover, with retail properties—particularly shopping centres and urban commercial assets—facing higher premiums. In 2024, Lloyd’s of London assigned SRCC a distinct code, and in 2025 Verisk released the first US-focused SRCC catastrophe model.
The broader industry context is also a source of concern. Allianz’s 2026 Risk Barometer ranks “political risk and violence” seventh among global risks, identifying civil unrest as a major concern after armed conflict. Europe and the United States are noted as regions of highest exposure, with large-scale protests and property damage increasing.
Experts warn that SRCC losses have reached a level where single events causing more than $5 billion in damage are no longer implausible. In some cases, these risks may even exceed losses from natural disasters. Consequently, corporate risk management, political risk modelling, and ensuring adequate coverage are becoming essential prerequisites for business resilience.
