Author: Joan Rupar
We saw an unusually high number of global elections in 2024, with half the world's population casting ballots in more than 70 countries. Geo-political tensions can significantly impact commercial insurance by increasing risk exposure for non-governmental organizations (NGOs), which can lead to higher premiums and more claims related to political violence, terrorism and civil unrest. At Gallagher, we're monitoring key regional and global conflicts that carry substantial geopolitical risk and volatility.
As all NGOs try to do more with their budgets, staffing and volunteer resources remain stressed. Managing the risks to your staff and volunteers to continue your mission is essential. Resources become more important, but budgets become tight. Here are some ways to maximize your spending power:
- Examine the features embedded in your insurance policies. Many policies offer valuable services that are purchased separately. Examples include emergency assistance providers to support Travel Accident coverage or Foreign Liability policies. Emergency assistance providers are qualified, reputable and coordinate with your insurance coverage for no additional cost. They offer online medical and security information as well as an app for travelers to use. Often, assistance providers are contracted separately from insurance — just in case. Since these services often come at a significant cost, examine utilization and engagement in travel planning. An embedded provider may be a great option.
- Kidnap, Ransom and Extortion (KR&E) coverage has an aligned consultant to provide advice, online country information, and newsletters and training. Most policies dedicate a percentage of the premium to support projects with the consultant. These projects can range from a review of your crisis plan to tabletop exercises.
- Cyber Insurance policies can offer consulting or scans of your systems to check for vulnerabilities. These tools can help mitigate loss, which helps prevent interruption.
- Understand your minimum earned premium at renewal. It's common for an insurer to attach a provision stating the policy premium is fully earned. This provision means that if your operations end, travel stops or grants are terminated, the annual premium is payable in full. If coverage is canceled, the carrier retains the full premium. Discuss any possibility with your broker to confirm any flexibility.
Lastly, as you review your placements each year, be on the watch for redundant coverage and services. Explore how these resources can put those policies to work for your organization.
