In its just-published 2026 Global Terrorism Risk Insurance Report, Marsh notes that 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.
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, the report said. 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.”
Emil Metropoulos, Terrorism Center 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.”
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