Insurance company Synthetik calculates potential losses considering scenarios of civil unrest.

In a recent report, Allianz Global Corporate & Specialty (AGCS) has sounded the alarm about a rising trend of civil unrest and protests worldwide. The warning comes in response to escalating insurance losses from large-scale civil unrest events in recent years.

One such hotspot is France, where riots and civil unrest have been a concern. However, according to commentary, the riots have magically stopped, but tensions remain high. The grandmother of a youth killed by the Police in France made an appeal to the mainstream media, which seems to have contributed to the stoppage of the riots and civil unrest.

Meanwhile, DBRS Morningstar has issued commentary on the insurance implications from the recent riots and civil unrest in France. This comes as Verisk, a global analytics and data provider, is taking a new approach to the exclusion clause of "Riot, war, civil unrest" in insurance.

In a bid to address this growing concern, Synthetik Insurance Technologies has produced a detailed response to the Lloyd's 2025 Strike, Riot, and Civil Commotion (SRCC) Extreme Disaster Scenario. The scenario considers potential outcomes from a catastrophic earthquake along the Cascadia Subduction Zone in the U.S.

Synthetik's advanced modeling platform, srccQuantum, was used to evaluate potential losses from SRCC events triggered by societal reactions following such a catastrophic earthquake. The analyses revealed significant aggregation risks, particularly through contagion-like spread along economically and symbolically significant pathways.

The response from Synthetik is based on two distinct types of SRCC events: organized demonstrations in major North American cities and dispersed civil unrest in smaller towns and cities along the West Coast directly impacted by the earthquake.

Josh Hatfield, Chief Product Officer of Synthetik, emphasized the critical importance of adopting advanced modeling practices to effectively anticipate and mitigate SRCC exposures. Tim Brewer, Chief Operating Officer of Synthetik, stated that SRCC has transitioned from a secondary concern to a central focus within the political violence market and for broader all-risk property policies.

The report includes predicted losses and risk maps for cities such as San Francisco, New York, Vancouver, and Washington DC. However, there are no specific search results indicating which insurance companies are currently working on scenarios involving asset loss due to riots, arson, and theft amid potential unrest.

The Allianz report also mentions a rise in activism and environmental concerns contributing to civil unrest. Allianz attributes this potential increase to anger over growing social inequality, cost-of-living issues, and polarized politics, among other factors. Tensions remain high in France, and another incident involving civil unrest is a possibility.

Vulnerabilities in second tier and regional cities, which have been historically considered lower risk, show indications of latent exposure. This underscores the need for insurance companies to be vigilant and prepared for potential unrest in unexpected areas.

Insurance company Synthetik calculates potential losses considering scenarios of civil unrest.