Social Shocks
Lloyd's of London, famed insurance adjusters, commissioned their analysts to look at the exposure that their industry would face with food shocks. The results were not promising, as a result of their findings they warned their industry to expect to make more payouts. They not only looked at food price increase but the disturbance to the social order and how that would affect their payouts. They advised the industry to prepare to take a greater role in mitigating the coming shocks to the social order as a result of costly food price increases.
When food prices spike, the social order is strained. We can look the Arab Spring as an example. Most commentators wrongly assumed that these people desired democracy but it might have been a matter of food prices. Marco Lagi, Karla Bertrand, and Yaneer Bar-Yam found a strong correlation between food prices and insurrection during the Arab Spring.
To note, I am not suggesting we will be facing insurrection but our social systems will be stressed. Those who are most stressed are the most vulnerable of our society, the needy, infirmed, and disabled. To add even more spite, our leaders within all levels are unprepared to act proactively to the coming food shocks, as evidenced by the findings of the simulation.
To note, I am not suggesting we will be facing insurrection but our social systems will be stressed. Those who are most stressed are the most vulnerable of our society, the needy, infirmed, and disabled. To add even more spite, our leaders within all levels are unprepared to act proactively to the coming food shocks, as evidenced by the findings of the simulation.