Business Leaders Fear Impact of Election Year on International Trade
Business leaders across North America are feeling the pressure as the upcoming election year looms large. According to a recent survey conducted by Beazley, 65% of North American business leaders are concerned about how this election year will impact their ability to trade internationally. In the United States specifically, 32% of leaders identified political risk as their number one threat.
The survey, which included over 3,500 business leaders from various countries, revealed that 30% of international business leaders see political risk as the biggest threat they face in 2024. Additionally, 36% believe they are operating in a high-risk environment.
Chris Parker, head of terrorism and deadly weapons protection at Beazley, highlighted the significant political uncertainty facing businesses worldwide in this ‘year of the election’. With over 60 countries holding major elections, the potential for unrest and instability is high.
In the U.S., where a presidential election is on the horizon and memories of the events of January 2021 are still fresh, 25% of business leaders feel unprepared to handle the political risks they are facing.
Global conflicts, such as the Russian aggression against Ukraine and the ongoing tensions in the Middle East, are adding to the uncertainty. Lenders are increasingly requiring political risk protection for international firms, particularly in politically unstable regions.
Roddy Barnett, head of political risks and trade credit at Beazley, emphasized the importance of specialty insurance in providing financial reassurance to businesses. He stressed the need for proactive contingency plans to mitigate macroeconomic and political risks.
As businesses navigate the challenges of international trade in an increasingly volatile political landscape, having the right insurance coverage and risk mitigation strategies in place is crucial. Stay informed with the latest insurance news by signing up for updates from Beazley.