The global Terrorism Insurance Market Study analyzes and forecasts the market size across 6 regions and 24 countries for diverse segments -By Type (Property Damage, Business Interruption, Liability, Others), By Application (Individual, Organization).
The Terrorism Insurance Market is poised for steady growth as geopolitical tensions, social unrest, and acts of terrorism remain ongoing concerns for businesses across the globe. This specialized insurance offers financial protection to organizations in the event of property damage, business interruption, or other losses resulting from terrorist attacks. As more businesses become aware of the potential financial risks associated with terrorism, particularly in urban centers and high-risk industries, the demand for terrorism insurance is increasing. Regulatory frameworks in regions like the U.S., where the Terrorism Risk Insurance Act (TRIA) mandates coverage, are also fostering market expansion. Additionally, insurers are enhancing their offerings by integrating coverage for cyberterrorism, reflecting the evolving nature of threats in the digital age.
The market report analyses the leading companies in the industry including AIG (American International Group), Allianz, Berkshire Hathaway Specialty Insurance, Chubb, FM Global, Hiscox, Liberty Mutual, Lloyd's of London, Travelers Insurance, Zurich Insurance Group, and others.
The Terrorism Insurance Market is experiencing a notable trend towards a growing demand for more comprehensive coverage as terrorism evolves into increasingly sophisticated and multifaceted threats. While traditional terrorism insurance primarily covered physical damage from bombings or armed attacks, there is now a heightened need for coverage that includes a broader range of risks. This includes cyberterrorism, political violence, and environmental terrorism, which can cause significant economic and operational disruption. The shift is driven by a rise in unconventional and hybrid attacks that blur the lines between physical and digital risks, requiring insurers to develop more sophisticated and customizable insurance packages. As businesses become more globalized and interconnected, the risk exposure to these threats increases, pushing organizations to seek tailored, all-encompassing policies to ensure their assets and operations are adequately protected. This evolving trend is also amplified by the growing importance of corporate governance and the need to ensure risk management strategies are aligned with modern security challenges.
A key driver for the Terrorism Insurance Market is the requirement for certain industries to have comprehensive terrorism coverage, often driven by government mandates. In several countries, including the U.S., the U.K., and parts of Europe, governments have either legislated or recommended mandatory terrorism insurance for businesses operating in critical sectors like transportation, energy, and finance. This is especially crucial in high-risk urban areas or in infrastructure-heavy industries where the impact of a terrorist attack can be catastrophic. Moreover, businesses are increasingly prioritizing comprehensive risk mitigation strategies, which include terrorism coverage, as part of their broader corporate security measures. With the rise in terrorist attacks globally, companies are recognizing the need for protection not only to comply with regulations but also to shield themselves from potentially devastating financial losses. The growing frequency of high-profile attacks and natural disasters also underscores the importance of having a robust insurance plan in place, further driving the demand for terrorism insurance across industries.
A significant opportunity within the Terrorism Insurance Market lies in expanding offerings to emerging economies where geopolitical instability and risk exposure are on the rise. As developing regions experience increased economic growth, urbanization, and industrialization, they become more vulnerable to terrorism-related risks. Insurance companies that tailor their products to these emerging markets can unlock substantial growth potential, especially in regions with limited access to specialized risk coverage. Furthermore, the increasing threat of cyberterrorism presents a unique opportunity for insurers to develop innovative, cyber-focused policies. With cyber-attacks becoming a growing part of the terrorism landscape, businesses are increasingly seeking coverage that protects against the financial impact of data breaches, ransomware attacks, and other forms of digital terrorism. This expanded focus on digital threats provides insurers with the chance to diversify their offerings and position themselves as leaders in a rapidly evolving risk landscape, catering to a new generation of businesses increasingly reliant on digital infrastructure.
The organization segment is the largest in the terrorism insurance market due to the high risk exposure that businesses, corporations, and governmental entities face in the event of terrorist attacks. Organizations, particularly those in high-risk industries like finance, infrastructure, and energy, often have significant assets and operations that require protection from unforeseen events, including terrorism. Additionally, regulatory frameworks in certain countries mandate companies to obtain terrorism insurance, further driving demand. Organizations also tend to hold higher-value policies compared to individuals, as their financial losses from property damage, business interruption, or legal liabilities can be substantial. This makes the organizational segment the dominant player in the market.
The business interruption segment is expected to be the fastest-growing in the terrorism insurance market over the forecast period to 2032. This growth is driven by increasing awareness of the substantial financial losses companies can suffer from operational downtime following a terrorist attack. With globalization and interconnected supply chains, businesses are more vulnerable to disruptions that can halt production, delay deliveries, and cause revenue losses. In particular, industries such as manufacturing, logistics, and retail are highly sensitive to operational stoppages. The rising adoption of digital infrastructure also heightens concerns over cyber-terrorism, making business interruption coverage essential for mitigating risks related to lost income and recovery costs.
By Type
Property Damage
Business Interruption
Liability
Others
By Application
Individual
Organization
Countries Analyzed
North America (US, Canada, Mexico)
Europe (Germany, UK, France, Spain, Italy, Russia, Rest of Europe)
Asia Pacific (China, India, Japan, South Korea, Australia, South East Asia, Rest of Asia)
South America (Brazil, Argentina, Rest of South America)
Middle East and Africa (Saudi Arabia, UAE, Rest of Middle East, South Africa, Egypt, Rest of Africa)
AIG (American International Group)
Allianz
Berkshire Hathaway Specialty Insurance
Chubb
FM Global
Hiscox
Liberty Mutual
Lloyd's of London
Travelers Insurance
Zurich Insurance Group
*- List Not Exhaustive
TABLE OF CONTENTS
1 Introduction to 2024 Terrorism Insurance Market
1.1 Market Overview
1.2 Quick Facts
1.3 Scope/Objective of the Study
1.4 Market Definition
1.5 Countries and Regions Covered
1.6 Units, Currency, and Conversions
1.7 Industry Value Chain
2 Research Methodology
2.1 Market Size Estimation
2.2 Sources and Research Methodology
2.3 Data Triangulation
2.4 Assumptions and Limitations
3 Executive Summary
3.1 Global Terrorism Insurance Market Size Outlook, $ Million, 2021 to 2032
3.2 Terrorism Insurance Market Outlook by Type, $ Million, 2021 to 2032
3.3 Terrorism Insurance Market Outlook by Product, $ Million, 2021 to 2032
3.4 Terrorism Insurance Market Outlook by Application, $ Million, 2021 to 2032
3.5 Terrorism Insurance Market Outlook by Key Countries, $ Million, 2021 to 2032
4 Market Dynamics
4.1 Key Driving Forces of Terrorism Insurance Industry
4.2 Key Market Trends in Terrorism Insurance Industry
4.3 Potential Opportunities in Terrorism Insurance Industry
4.4 Key Challenges in Terrorism Insurance Industry
5 Market Factor Analysis
5.1 Value Chain Analysis
5.2 Competitive Landscape
5.2.1 Global Terrorism Insurance Market Share by Company (%), 2023
5.2.2 Product Offerings by Company
5.3 Porter’s Five Forces Analysis
5.4 Pricing Analysis and Outlook
6 Growth Outlook Across Scenarios
6.1 Growth Analysis-Case Scenario Definitions
6.2 Low Growth Scenario Forecasts
6.3 Reference Growth Scenario Forecasts
6.4 High Growth Scenario Forecasts
7 Global Terrorism Insurance Market Outlook by Segments
7.1 Terrorism Insurance Market Outlook by Segments, $ Million, 2021- 2032
By Type
Property Damage
Business Interruption
Liability
Others
By Application
Individual
Organization
8 North America Terrorism Insurance Market Analysis and Outlook To 2032
8.1 Introduction to North America Terrorism Insurance Markets in 2024
8.2 North America Terrorism Insurance Market Size Outlook by Country, 2021-2032
8.2.1 United States
8.2.2 Canada
8.2.3 Mexico
8.3 North America Terrorism Insurance Market size Outlook by Segments, 2021-2032
By Type
Property Damage
Business Interruption
Liability
Others
By Application
Individual
Organization
9 Europe Terrorism Insurance Market Analysis and Outlook To 2032
9.1 Introduction to Europe Terrorism Insurance Markets in 2024
9.2 Europe Terrorism Insurance Market Size Outlook by Country, 2021-2032
9.2.1 Germany
9.2.2 France
9.2.3 Spain
9.2.4 United Kingdom
9.2.4 Italy
9.2.5 Russia
9.2.6 Norway
9.2.7 Rest of Europe
9.3 Europe Terrorism Insurance Market Size Outlook by Segments, 2021-2032
By Type
Property Damage
Business Interruption
Liability
Others
By Application
Individual
Organization
10 Asia Pacific Terrorism Insurance Market Analysis and Outlook To 2032
10.1 Introduction to Asia Pacific Terrorism Insurance Markets in 2024
10.2 Asia Pacific Terrorism Insurance Market Size Outlook by Country, 2021-2032
10.2.1 China
10.2.2 India
10.2.3 Japan
10.2.4 South Korea
10.2.5 Indonesia
10.2.6 Malaysia
10.2.7 Australia
10.2.8 Rest of Asia Pacific
10.3 Asia Pacific Terrorism Insurance Market size Outlook by Segments, 2021-2032
By Type
Property Damage
Business Interruption
Liability
Others
By Application
Individual
Organization
11 South America Terrorism Insurance Market Analysis and Outlook To 2032
11.1 Introduction to South America Terrorism Insurance Markets in 2024
11.2 South America Terrorism Insurance Market Size Outlook by Country, 2021-2032
11.2.1 Brazil
11.2.2 Argentina
11.2.3 Rest of South America
11.3 South America Terrorism Insurance Market size Outlook by Segments, 2021-2032
By Type
Property Damage
Business Interruption
Liability
Others
By Application
Individual
Organization
12 Middle East and Africa Terrorism Insurance Market Analysis and Outlook To 2032
12.1 Introduction to Middle East and Africa Terrorism Insurance Markets in 2024
12.2 Middle East and Africa Terrorism Insurance Market Size Outlook by Country, 2021-2032
12.2.1 Saudi Arabia
12.2.2 UAE
12.2.3 Oman
12.2.4 Rest of Middle East
12.2.5 Egypt
12.2.6 Nigeria
12.2.7 South Africa
12.2.8 Rest of Africa
12.3 Middle East and Africa Terrorism Insurance Market size Outlook by Segments, 2021-2032
By Type
Property Damage
Business Interruption
Liability
Others
By Application
Individual
Organization
13 Company Profiles
13.1 Company Snapshot
13.2 SWOT Profiles
13.3 Products and Services
13.4 Recent Developments
13.5 Financial Profile
AIG (American International Group)
Allianz
Berkshire Hathaway Specialty Insurance
Chubb
FM Global
Hiscox
Liberty Mutual
Lloyd's of London
Travelers Insurance
Zurich Insurance Group
14 Appendix
14.1 Customization Offerings
14.2 Subscription Services
14.3 Related Reports
14.4 Publisher Expertise
By Type
Property Damage
Business Interruption
Liability
Others
By Application
Individual
Organization
Global Terrorism Insurance Market Size is valued at $5.1 Billion in 2024 and is forecast to register a growth rate (CAGR) of 3.9% to reach $6.9 Billion by 2032.
Emerging Markets across Asia Pacific, Europe, and Americas present robust growth prospects.
AIG (American International Group), Allianz, Berkshire Hathaway Specialty Insurance, Chubb, FM Global, Hiscox, Liberty Mutual, Lloyd's of London, Travelers Insurance, Zurich Insurance Group
Base Year- 2023; Estimated Year- 2024; Historic Period- 2018-2023; Forecast period- 2024 to 2032; Currency: Revenue (USD); Volume