In this interview with Insurance Business, Tony Gallagher, CEO Asia Pacific, described how “the world we’re in now is pretty complex,” when evaluating the terrorism market. For brokers, this heightens the need to be clear at renewal what’s actually covered and to encourage global clients to think about broader, layered coverage.
The ongoing US-Iran conflict is becoming a big driver of currently heightened terrorism risks that can blur the line between direct acts of terrorism and civil unrest. The latest 2026 Global Terrorism Risk Insurance Report by Marsh found that these increasingly complex risks have shifted from property-focused assaults to dispersed networks employing tactics including political violence, cyberattacks and even the threat of biological and chemical attacks.
Tony’s first message to brokers involves education.
“At renewal, brokers should be clear about what’s covered—especially with emerging risks like state-sponsored terrorism and cyber terrorism,” he said.
Tony goes on to describe one of the biggest recurring problems: insureds often assume cover is broader, or simpler, than it really is when a loss occurs.
“The biggest gaps usually come down to misunderstandings about what’s actually covered,” he said.