Despite an increasingly complex and evolving threat landscape, the terrorism insurance market remains stable and robust, according to Marsh’s recently-published 2026 Global Terrorism Risk Insurance Report.
The report highlights that modern terrorism threats have evolved 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 physical attacks, like the 2025 New Orleans truck ramming and the Bondi Beach assault, reveal the significant human and business cost.
At the same time, terrorism-related cyberattacks are halting supply chains and amplifying economic disruption by crippling critical systems and global operations, demonstrating the dual threat of modern terrorism.
“This shift demands adaptive risk management strategies and insurance solutions that address emerging threats,” Marsh states.
Despite these challenges, the insurance and reinsurance markets continue to demonstrate resilience; 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.
By sharing catastrophic losses between the public and private sectors. Its framework limits insurers’ exposure through individual deductibles and industry-wide thresholds, enabling insurers to offer terrorism coverage with greater confidence and predictability.
“This federal support is essential for maintaining insurer capacity, protecting balance sheets, and promoting competitive pricing across commercial lines, particularly as terrorism risks expand beyond traditional urban centers,” Marsh explains.
The report underscores that public-private partnerships – often appearing as terrorism risk pools – are essential for global economic continuity.
These public-private partnerships blend government regulation and resources with private insurers’ expertise, fostering custom solutions like standalone terrorism and political violence policies, captive insurance, and coverage for nonphysical/cyber damage.
They also aid in establishing reinsurance to fill protection gaps and attract alternative capital.
Tarique Nageer, Terrorism Placement Advisor, Marsh Risk, said: “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.
“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.”
