Singapore, 16 February, 2011– Companies are re-assessing the adequacy of their insurance coverage and risk management arrangements in the wake of the recent political unrest in Cairo and other cities across Egypt, according to Marsh. Companies investing, manufacturing and trading in emerging markets are increasingly realising that they face a more complex risk landscape. As these events demonstrate, instances of political violence can occur with little warning in countries previously considered relatively stable.
Commenting on recent developments, Richard Green, Asia Head of Marsh’s Trade Credit and Political Risk Practice, said: “We saw companies across industries affected by acts of political violence in Egypt, including those in the oil and gas, hospitality and real estate sectors as well as professional services firms and financial institutions.
“These incidents in Egypt should cause every company with operations in emerging markets to re-evaluate the adequacy of their risk management strategies. Companies need to have plans in place that can protect both colleagues and strategic assets.”
Companies with operations in countries affected by political unrest face losses from risks such as business interruption, theft of and damage to property, threats to contract for both purchase and supply, late payments – potentially impairing cash flow, and the need to evacuate employees.
“Some buyers of terrorism insurance have found themselves without cover following civil disturbances, for example in Thailand last year, because of disagreements about whether certain events were acts of terrorism or political violence,” Mr Green added. “Companies need to make sure that they have insurance coverage for a broad range of perils, reducing uncertainty that can be caused over the classification of an event.”
Contact:
William Sargent
+86 136 6199 3079
william.sargent@marsh.com
About Marsh
Marsh, the world’s leading insurance broker and risk adviser, has over 24,000 employees and provides advice and transactional capabilities to clients in over 100 countries. Marsh is a member of Marsh & McLennan Companies, a global professional services firm with over 50,000 employees worldwide and annual revenue of $10 billion, which is also the parent company of Guy Carpenter, the risk and reinsurance specialist; Mercer, the provider of HR and related financial advice and services; and Oliver Wyman, the management consultancy. Its stock (ticker symbol: MMC) is listed on the New York, Chicago and London stock exchanges.
