Despite the increasingly complex and evolving threat landscape, the terrorism insurance market remains stable and strong, according to Marsh’s recently released 2026 Global Terrorism Risk Insurance Report.
The report highlights that modern terrorist threats have evolved from layered, property-focused attacks to decentralized networks employing multiple tactics, including cyberattacks, political violence, and emerging nuclear, biological, chemical and radiological (NBCR) threats.
Recent low-sophistication physical attacks, such as the 2025 New Orleans truck crash and the Bondi Beach attack, have revealed enormous human and commercial losses.
At the same time, terrorism-related cyberattacks are disrupting supply chains and exacerbating economic damage by crippling critical systems and global operations, illustrating the twin threats of modern terrorism.
“This shift requires adaptive risk management strategies and insurance solutions to address emerging threats,” Marsh said.
Despite these challenges, the insurance and reinsurance markets continue to demonstrate resilience; standalone policies generally offer broader coverage, with reinsurers able to provide between $1 billion and $4 billion per risk capacity, depending on insured location and insurer aggregation, the report said.
Taking into account all dangers, including terrorism, the total capitalization of the U.S. insurance and reinsurance market is estimated to be approximately $1.2 trillion by 2025.
At the heart of American stability is the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA), which provides critical federal support and is set to expire at the end of 2027.
By sharing catastrophic losses between the public and private sectors. Its framework limits insurers’ risk exposure through individual deductibles and industry-wide thresholds, allowing insurers to provide terrorism coverage with greater confidence and predictability.
“This federal support is critical to maintaining insurer capacity, protecting balance sheets and facilitating competitive pricing across business sectors, particularly as terrorism risks extend beyond traditional urban centers,” Marsh explained.
The report highlights that public-private partnerships – often expressed as terrorism risk pools – are critical to the continuity of the global economy.
These public-private partnerships combine government regulation and resources with the expertise of private insurers to foster customized solutions such as independent terrorism and political violence policies, captive insurance, and non-physical/cyber damage insurance.
They also help build reinsurance to fill protection gaps and attract alternative capital.
Tarique Nageer, terrorism placement consultant at Marsh Risk, said: “Increased 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.
“TRIPRA has played an important role in creating and maintaining stability in the re/insurance market, and as new threats to global businesses rapidly evolve, its reauthorization is critical, allowing us to continue to have nuanced, solutions-based conversations with our clients about their unique vulnerabilities.”
Emil Metropoulos, Head of the Guy Carpenter Counterterrorism Center of Excellence, added: “TRIPRA and other public-private partnerships around the world together form a more balanced and sustainable ecosystem that anchors systemic risks, strengthens market confidence, and expands the protections available to policyholders.
“This collaborative approach not only mitigates the financial impact of terrorism, it also strengthens the nation’s resilience, ensuring businesses, workers and communities are better protected from the multifaceted and evolving risks of terrorism today and in the future.”
The post-terrorism insurance market remains strong amid changing threat landscape: Marsh appeared first on ReinsuranceNe.ws.