Aon Risk Solutions, the global risk management business of Aon Corporation, provides comment on the situation unfolding in Egypt:
Beverley Marsden, Director of Aon Political Risks:
“From a Political Risk point of view it is too early to say whether the events in Egypt will lead to losses in the insurance market. Global confiscation policies may include Political Violence cover and rioting and looting may impact assets covered under such policies.
“We cannot advise at this stage on the extent to which this has happened. Shutting down the internet or mobile networks would not necessarily generate claims as such action is likely to be short term – plus government contracts with mobile telecoms providers may well give the government the right to shut down networks for reasons of national security.
“We are all watching of course what happens to the Egyptian government. Whatever political system emerges will likely have medium term implications on Political Risk. Right now the market can only look at their exposures and monitor the situation as it unfolds”
Justin Priestley, head of Aon’s Crisis Consulting team adds:
“Whilst the long term impact on political risk is not yet clear, a more immediate concern for companies is the safety of their people. What’s going on in Egypt highlights the need for organisations to have plans and procedures in place to protect both in-country workers and travelling personnel from getting caught up in violent clashes of this kind.
“Situations like this can blow up very quickly – and in places that have traditionally been considered ‘safe’. Organisations need to have robust travel risk management and incident response mechanisms to ensure that they are doing everything possible to protect their employees and keep them informed”.
Source : Aon Press Release
