Africa's coups, riots, and messy elections perpetuate heightened risk exposures throughout the region. These risks are so are so complex and unique, it is necessary to seek the specialized guidance of a trusted insurance advisor with global capabilities.
Washington D.C. (PRWEB) February 22, 2013
Clements Worldwide (Clements), the leading provider of international insurance solutions, urges more businesses to re-examine their risk management strategies before Kenya’s March 4th elections. “There is a chance that one of Africa’s most stable economies, as the next round of voting approaches, will be on the brink of instability once again, potentially repeating the political and social tumult of the 2007 elections,” according to Dan Tuman, Vice President of Sales at Clements Worldwide. Post-election violence back then generated heavy casualties, population displacements, widespread loss of property and a general atmosphere of fear according to independent observers in the ethnically-diverse nation with more than 41 million people.
“Companies could once again suffer from significant losses due to business interruption. Potential road blockages would cause logistics challenges, either delaying or altogether halting cargo deliveries . A social uprising might also create an unsafe environment for staff, resulting in prolonged absences. And finally and perhaps most worrisome, any resulting political violence would expose facilities and offices to potentially significant property damage.”
With these crippling damages in recent memory, companies with an on-the-ground presence in Kenya should re-evaluate their risk management portfolios to protect against business interruption arising from political and social upheaval. Unsurprisingly, there has been a surge in demand for special risks coverage within the past 5 years. According to the Africa Trade Insurance Agency (ATI), demand for uptake of political risk and terrorism insurance covers by both local and international companies operating in Kenya have gone up by over 50% in the last 12 months.
“Recent events such as the Arab Spring have reinforced the notion that a benign, investor-friendly country today can be tomorrow’s risk hot-spot,” said Mr. Tuman. “While uncertainty remains, most companies are taking necessary precautions. Preparedness amongst businesses is a higher priority than ever before, as evidenced by the recent increase in special risk covers. From standard property to political risk to terrorism insurance, organizations are now proactively protecting against financial losses with critical insurance cover.”
Mr. Tuman concludes: “Clements Worldwide has seen an increase in the demand for both consultative services and bespoke products tailored to the region. Africa will remain a key market in the global marketplace, as it is host to some of the world’s fastest growing economies. However, coups, riots, and messy elections perpetuate heightened risk exposures throughout the region. Oftentimes, these risks are so complex and unique, it is necessary to seek the specialized guidance of a trusted insurance advisor with global coverage capabilities.”