WASHINGTON (AN) — A leading insurance provider for international organizations says a major cause of loss and risk is the rise in liability from global harassment and abuse claims.
High risk environments are nothing new for international aid groups, whose employees suffer accidents or risk being attacked or kidnapped by militants. International organizations' food and equipment can be targets of theft and destruction.
Among United Nations agencies and non-governmental organizations, 27% of the respondents to Clements Worldwide's annual survey reported they suffered a significant loss from professional and management liability, which includes the categories of gender pay gap and duty of care.
The survey results, reported in April, show 17% of the organizations surveyed said they were subject to a lawsuit or litigation in the past six months.
The company's risk index, released in Lagos, Nigeria, in an event coordinated with the U.S. Embassy in Nigeria, found government contractors, international schools and government agencies felt the biggest impact from related losses. Clements Worldwide said that poses a threat to the quality of education and services.
"We did not anticipate seeing such a surge in management liability claims, and for it to be such a huge loss for our primary two segments — NGOs and international schools,” said Dan Tuman, president of the insurance provider, which offers coverage in more than 170 countries.
“In today’s social climate, these trends make a clear case for organizations and industries everywhere to take steps to adapt their policies accordingly and prepare for the unexpected, as no one is immune to risk," he said.
Worries about laws and regulations
More than 35% of the survey's respondents expressed concern about increased threats of political violence and disruptions from elections or political environments, up from 27% last year.
Nearly a third feared a disruption from terrorism was likely to occur in the year ahead; 58% of government agencies saw terrorism as a significant concern.
Almost 37% worried about a detrimental rise in the number of laws and regulations affecting NGOs and U.N.-affiliated organizations over the coming year. Almost a quarter said they already had high losses from changes in regulation.
Only 13% of those surveyed, down from 37% last year, said such risks were enough to cause a delay in expanding their international operations.
The survey's responses drew on more than 500 senior risk management executives working in international education, IT, manufacturing, construction, government, banking, transportation, NGOs, tourism, education and energy sectors.