Political polarisation is rising globally and posing new challenges for businesses, according to Willis latest report

Core Insights - The latest Political Risk Index by Willis indicates that rising political polarisation is linked to increased political violence and unpredictable government policies [1][2] Group 1: Affective Polarisation - Affective polarisation is at a historic high globally, with individuals increasingly viewing supporters of opposing political parties as hostile [2] - Countries experiencing violent political conflicts show the highest levels of polarisation, with democracies like the US, Germany, India, Brazil, and Bulgaria seeing the fastest increases [2][4] Group 2: Ideological and Elite Polarisation - The index also examines ideological polarisation, which reflects the extent of agreement on core policy issues, and elite polarisation, which measures how political rivals view each other as legitimate [3] - The US is unique in that it has seen rapid increases in affective, ideological, and elite polarisation over the past 15 years [3] Group 3: Historical Context and Trends - Historical data from over 200 countries shows that surges in polarisation often follow economic crises or corruption scandals, leading to the rise of populist movements and increased political violence [4] - Positive trends have been observed where truth and reconciliation processes, cross-party coalitions, and transparent investigations have led to reductions in political polarisation [4] Group 4: Business Implications - The director of political risk analytics at Willis highlights the correlation between polarisation and political violence, noting that businesses face growing challenges in increasingly polarised societies [5]