In today’s increasingly integrated world we need to be aware of political developments, actions and decisions that can have an adverse impact on our business. Within the Group’s risk management organisation, we have a team of specialists who look at a wide range of both commerce- and security-related political risks at global, country and business transaction levels.
These specialists identify, assess and monitor political risks on an ongoing basis, so we understand their implications and can initiate appropriate mitigation measures if required. Particular attention is paid to developments in high growth markets as well as to cross-border issues such as terrorism, energy, multi-national institutions or international trade.
Our knowledge of political risks is also highly relevant for ensuring sustainable business operations in line with environmental, social and governance (ESG) principles: Several of the sectors and issues covered by the eight policies of our Sustainability Risk Framework (see “Our Sustainability Risk Framework”) have a significant political dimension. Implementing these policies, both through SBR assessments and exclusion policies, thus requires a clear understanding of political risks. This is particularly true with regard to human rights violations, the proliferation of armaments into conflict areas or the identification of areas prone to civil unrest.
Furthermore, we seek to raise awareness of political risk within the re/insurance industry and among the broader public, and actively engage in dialogue with clients and other stakeholders. We also distil our ongoing assessments of political risks into several political and sustainability risk ratings at country level, which support our underwriting and investment decisions.