Even in times of geopolitical tension, the principles of free trade were upheld as a beacon of global unity, allowing businesses to grow and strengthen their operations.
This world order is now breaking down, with organizations forced to navigate the challenges of an increasingly multipolar world.
The Russian invasion of Ukraine in 2022 marked a major escalation in the ongoing war between the two Eastern European nations, plunging the wider continent into an energy supply crunch as Russian trade was placed under sanction that’s having a global impact
Now, the new US Federal Government has made clear to both its allies and foes that America will come first, sparking an international trade war with the introduction of tariffs. While the new administration’s policies are yet to take full effect, the impact of this rhetoric on international businesses and global supply chains cannot be understated.
This growing instability is present across the globe. The Israel-Gaza conflict has sparked a series of risks in the Red Sea, with Houthi attacks on western-flagged vessels on the rise.
The Sahel region of Africa has faced significant political instability, with six successful coups in the region during the last five years alone. The nations of Mali, Burkina Faso, Guinea and Niger are now all under the rule of military juntas.
Whether it’s war in Europe, American protectionism, instability in Africa and the Middle East, or a whole host of other known and unknown variables, we are living in truly unprecedented times.
We have reached this point of intense complexity despite the world’s best efforts over the last few decades to cement structures of global cooperation and free markets. While steps can be taken to help mitigate the impact of such disruption, it is ultimately impossible to accurately predict the unforeseen and to entirely mitigate factors outside of our control.
Businesses, both enterprise grade and those operating locally, know this better than anyone.
While a textile hub, mine or farm on the other side of the world may feel very far away, political change can have a profound impact on well-established supply chains, causing businesses of all sizes to be caught in the crossfire.
As specialists in risk management operating from offices in Paris, London and New York, we can guide you through uncertainty and offer safeguards against the unpredictable.
We aren’t here to only underwrite your risks, but to protect company cashflow and mitigate the financial impact of unexpected events. We are here to collaborate as a trusted advisor, helping you understand the risks facing your business, and build an insurance product to mitigate these risks.
We offer tailored insurance solutions that carefully balance affordability and comprehensive coverage for both foreseeable and unforeseen risk. We have been supporting financial institutions, export credit agencies, manufacturers, exporters, distributors, wholesalers and traders for almost 20-years, providing protection against political risk perils including asset confiscation, expropriation, nationalisation and deprivation, as well as insuring risks arising from currency inconvertibility and non-transfer, license cancellation, war and political violence.
If you have a question about how Tokio Marine HCC can protect your business in a volatile world, feel free to contact our team of underwriting professionals to learn more.