Global terrorism threats are becoming more complex yet the insurance market remains stable, according to Marsh’s 2026 Global Terrorism Risk Insurance Report.

Attacks now extend beyond traditional property-focused assaults to include cyber attacks that can shut down critical systems; politically motivated violence targeting governments or infrastructure; and emerging nuclear, biological, chemical and radiological risks that pose potentially catastrophic threats.

These dispersed, less predictable tactics amplify economic, operational and human consequences far beyond the immediate scene of an attack.

The report highlights recent high-impact incidents such as the 2025 New Orleans truck ramming and the Bondi Beach armed assault, alongside cyber attacks that disrupted global operations, showing how threats can halt supply chains and magnify economic disruption.

Despite these evolving risks, standalone policies offer broader coverage and re/insurers can provide per risk capacity of US$1bn to US$4bn, depending on location and aggregation. Total US insurance and reinsurance capital for all perils including terrorism was estimated at around US$1.2trn in 2025. The federal backstop TRIPRA, set to expire in 2027, remains central to market stability.

“Heightened geopolitical tensions, including the ongoing US–Iran conflict, are driving an increasingly complex and evolving terrorism threat landscape that is blurring the lines between terrorism, political violence and civil unrest,” said Tarique Nageer, terrorism placement advisor at Marsh Risk. “TRIPRA has been instrumental in creating and maintaining re/insurance market stability, and its reauthorisation is vital to enable us to continue having nuanced, solutions-based conversations with clients about their unique vulnerabilities as emerging threats to businesses around the world evolve at a rapid pace.”

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