Competition for sea, space and soil to add to geopolitical risk woes

Rising competition for supremacy over soil, sea, and space is expected to fuel future global geopolitical tensions as nations seek to stake their claims on sea-based borders, previously untapped mineral resources and the cosmos, according to a new report from Marsh Specialty.

The Political Risk Report 2022 notes that while land borders between countries remain key delineators of political risk – as exemplified by the current Russia/Ukraine conflict – competition for ocean territory, minerals and space will increasingly influence interstate relations.

“The conflict between Russia and Ukraine is a stark reminder of how quickly geopolitical risks can escalate and have a terrible local humanitarian impact as well as affect businesses and investors around the world,” said Nick Robson, head of credit specialties, Marsh Specialty.

“The appalling consequences of this conflict on the Ukrainian people will remain at the centre of our thoughts for the foreseeable future. However, this is also a moment for businesses and investors to consider how developments in the environments of sea, space, and soil could influence future geopolitical tensions between countries and regions. We are working with clients to help understand the potential impact of current and emerging political risks, together with the need for strategic risk and insurance plans, which will enable them to be more resilient to future political and economic crises.”

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