As global terrorism increases in scope and complexity it has led to new calls for comprehensive risk management and insurance solutions, including terrorism insurance.

Broker Marsh has published its 2026 Global Terrorism Risk Insurance Report, which found modern terrorism threats have shifted from hierarchical, property-focused assaults to dispersed networks employing diverse tactics, including cyberattacks, political violence, and emerging nuclear, biological, chemical, and radiological (NBCR) threats.

Recent low‑sophistication but high‑impact incidents such as the 2025 New Orleans truck ramming and the Bondi Beach armed assault in Australia highlight the human and business toll of physical attacks, while terrorism-related cyberattacks are credited with wiping critical systems and disrupting global operations, underscores how cyberterrorism can instantly halt supply chains and amplify economic disruption.

However Marsh added despite today’s evolving threat environment, the terrorism insurance market remains stable and robust; standalone policies often provide broader coverage terms, and (re)insurers are able to offer per risk capacity between $1 billion to $4 billion, depending on the location(s) insured and insurer aggregation positions.. Total capital for the combined US insurance and reinsurance market contemplating all perils, including terrorism, was estimated to be approximately $1.2 trillion in 2025. Central to this stability in the US is the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA), which provides a vital federal backstop and is set to expire at the end of 2027.

“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, Marsh Risk. “TRIPRA has been instrumental in creating and maintaining (re)insurance market stability, and its reauthorization 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.”

The report explained: “The terrorism risk landscape has undergone a significant transformation, evolving from hierarchical, property focused attacks to more frequent, ideologically driven acts targeting people and infrastructure with diverse tactics, including cyberattacks and political violence.

“This shift demands adaptive risk management strategies and insurance solutions that address emerging threats such as nuclear, biological, chemical, and radiological (NBCR) events, active assailant incidents, and workers’ compensation exposures related to terrorism.”

It added central to managing these complex risks in the US is the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA), which establishes a critical federal backstop that stabilises the insurance market by sharing catastrophic terrorism losses between the public and private sectors.

Marsh explained globally, public-private partnerships, often in the form of terrorism risk pools, play an indispensable role in sustaining market resilience and economic continuity.

“By combining government resources and regulatory oversight with private insurers’ underwriting expertise and innovation, these partnerships facilitate the development of tailored insurance solutions, including standalone terrorism and political violence policies, captive insurance utilisation, and expanded coverage for nonphysical damage and cyberterrorism.

“They also support the creation of reinsurance mechanisms that seek to close protection gaps and mobilise alternative capital.

“The evolving nature of terrorism threats, including potentially blurred lines between terrorism, political violence, and civil unrest, underscores the need for flexible, integrated insurance solutions and ongoing dialogue among stakeholders.”

Emil Metropoulos, Terrorism Centre of Excellence leader, Guy Carpenter, added: “Together, TRIPRA and other public-private partnerships around the world form a more balanced and sustainable ecosystem that anchors systemic risk, fosters greater market confidence, and broadens available protection for policyholders. This collaborative approach not only mitigates the financial impact of terrorism but also strengthens national resilience, ensuring that businesses, workers, and communities are better protected against the multifaceted and evolving terrorism risks of today and tomorrow.”