Riot and strikes insurance back with a bang amid unprecedented street clashes in Hong Kong
- Demand has risen for cover for damage related to riots, strikes and civil commotion in recent months, AXA chief executive designate says
- Hong Kong insurance firms would view marches as riots, says financial planning firm
More Hong Kong companies and shops are considering insurance policies that cover rioting and strikes, French insurer AXA, the city’s largest general insurer by market share, said.
The special administrative region has witnessed unprecedented social unrest over the past three months, with protests against a controversial extradition bill now in their 12th week.
“We have seen more demand from customers looking for cover for damage related to riots, strikes and civil commotion, in recent months,” said Sally Wan Yuen-wai, chief executive designate of AXA Hong Kong and Macau.
“While most large hotel operators and big companies will have comprehensive coverage, which may have riot-related cover already, many companies in Hong Kong do not have insurance cover that includes losses due to rioting, strikes and other civil commotion,” she said.
That is because Hong Kong is not prone to violent civil unrest. Even the current crisis started off with a peaceful march on June 9 that is said to have attracted a million people. It has since, except in few instances, taken a violent turn, with clashes in Admiralty, Wan Chai, Mong Kok, Yuen Long and Tsuen Wan, among other areas of Hong Kong.
“Recent incidents have pushed small and medium enterprises, restaurants and other businesses to consider insurance protection against any losses related to rioting and strikes,” Wan said. The type and price may vary and can be determined on a case-by-case basis, depending on the location and nature of the business, and the extent of cover wanted by companies, she said.