War has overtaken civil unrest as the political violence exposure that companies fear most, as conflicts in Europe and the Middle East disrupt global trade flows, strain political alliances, embolden adversarial powers, and heighten risks to business assets, according to the 2026 Allianz Risk Barometer.
War was identified as the political violence exposure most feared by companies, surpassing civil unrest to garner 53% of the votes in the 2026 Allianz Risk Barometer, climbing from 48% in 2025. Allianz noted political risk and violence climbed to number seven in the Risk Barometer, its highest position ever (compared to number 9 in 2025).
Allianz said this finding means these perils have joined other mainstream business risks as the world faces “one of the most volatile geopolitical periods in our history since the end of World War Two.”
Allianz released its 2026 Risk Barometer in January and published on May 19 a new report, titled “Political violence and civil unrest trends 2026,” which focuses on one section of the January report. The Risk Barometer tracks the most important corporate concerns for the year ahead, as voted for by risk management experts from almost 100 countries and territories.
Around 60% of respondents from Europe and Asia-Pacific see war as the top political risk and violence exposure, while civil unrest ranks number two globally (at 49%), and terrorism/sabotage is ranked number three (46%).
In the Americas, civil unrest is ranked as the top political risk and violence exposure by 64% of survey respondents, with war coming in at fifth place (ranked by 29% of respondents). Civil unrest also is a top concern in countries such as India (60%), Colombia (76%), and France (where it has soared to 82%).
In addition, more than half of smaller companies (with less than $100 million of revenue) rated civil unrest as their top political violence concern, Allianz continued.
Allianz Research tracked around 250 reported strikes, riots, and civil commotion (SRCC) events over the past five years with event participation exceeding 1,000 people and lasting for more than one day. The analysis revealed that Pakistan experienced the most events, followed by Indonesia. Allianz noted that other countries with a high number of SRCC events include the U.S., Greece, Tunisia, Hungary, Iran, and India.
The U.S.-Iran conflict also could lead to heightened risk of strikes, riots, and civil unrest, “particularly in countries heavily reliant on Middle Eastern oil and gas,” Allianz explained. “Nations with robust mechanisms to manage food and fuel price shocks may mitigate these risks, while others face elevated threats of rationing, unrest, and looting.”
“With geopolitical upheaval, economic pressures, and social media all amplifying the threat of political violence, the potential fallout can lead to substantial economic and insured losses, challenging businesses and their insurers,” the report said.
The pattern of protests and violence in recent years has clearly shown that some industries and occupations are much more vulnerable to the full spectrum of political violence perils, but any organization can be affected, Allianz said in a press release accompanying the report.
Rising Demand for Political Violence Insurance
The U.S.-Iran conflict and rising geopolitical volatility is likely to have a significant impact on risk mitigation going forward, accelerating demand for political violence and terrorism (PVT) insurance as well as coverage for SRCC events, the Allianz report said.
“Demand for political violence insurance continues to grow. We see an elevated level of interest and more buyers than ever in this space. Clients are broadening their coverage to better fit their risk footprint,” commented Srdjan Todorovic, global head of Political Violence and Hostile Environment Solutions at Allianz Commercial, who was quoted in the report.
Businesses also are prioritizing risk management and supply chain mitigation strategies, such as nearshoring, friendshoring, and supplier diversification, the report said. (Editor’s note: Friendshoring is defined by the World Economic Forum as limiting supply chains to, or sourcing manufacturing from, nations that share a company’s political, economic, and social values.)
