WTW has released its latest Terrorism Pool Index, offering a comparative snapshot of terrorism reinsurance pools across more than a dozen countries.
Now in its sixth edition, the 2025 report was developed with the International Forum for Terrorism Risk Insurance Pools (IFTRIP) and examined how national insurance programs are adapting to increasingly complex and interconnected terrorism risks.
The index provided a country-by-country analysis of how terrorism risk is managed through state-supported insurance schemes. It identified key features of these arrangements, including:
WTW’s report underscored that such pools remain a cornerstone in facilitating terrorism coverage where private market capacity alone may fall short.
“In an increasingly unpredictable world, the threat of terrorism remains a significant concern for nations and businesses alike,” said Fergus Critchley, head of crisis management North America at WTW.
The Australian Reinsurance Pool Corporation (ARPC), for example, was formed in the aftermath of 9/11, when commercial terrorism coverage became scarce. It offers reinsurance for losses related to declared terrorist incidents affecting commercial property, business interruption, and liability.
India’s IMTRIP, also created in the early 2000s, operates without direct government funding, instead pooling contributions from non-life insurers across the market.
Israel’s approach integrates state-funded compensation through tax-based mechanisms, while the US Terrorism Risk Insurance Program (TRIP) provides federal backing for certified terrorism events.
The index also drew attention to how recent civil unrest events are shaping the dialogue around insurance coverage.
Traditional models have been challenged by recent SRCC (strikes, riots, and civil commotion) incidents, prompting a re-evaluation of risk modelling strategies.
WTW emphasised the role of new analytic tools in forecasting unrest, using indicators such as political instability, social media activity, and geographic targeting.
Tools like the Synthetik SRCC Quantum Tool, referenced in the report, use spatial risk indicators to predict potential flashpoints by examining economic hubs, government sites, and culturally significant locations. These tools are positioned to help insurers assess exposure with greater accuracy amid increasing uncertainty.
Critchley noted that as unrest becomes more decentralised and digitally coordinated, the traditional assumptions embedded in insurance risk models require updating.
“A crucial part of political violence risk management is understanding the probability and likely magnitude of loss, and while terrorism risk modelling has long-provided valuable insights, the ability to estimate the financial impact of civil and social unrest has proven more allusive,” he said.
Although focused on terrorism insurance, the report’s findings also intersect with broader business risks.
In its recent publication, Client Trends 2025, Aon pointed to the convergence of trade disruptions, technological change, climate stress, and workforce transformation as drivers of systemic exposure.
Aon CEO Greg Case said integrated data and cross-functional planning are now essential components of enterprise risk management.
“The interconnectedness of these trends means that leaders need access to integrated data and analytics, capabilities, and expertise to effectively respond to increasingly linked risk and people issues,” he said.
