Growing Need for War Risk Insurance Amid Global Conflicts

Fri Oct 10 2025 22:29:55 GMT+0300 (Eastern European Summer Time)

As conflicts persist in Ukraine and the Middle East, the demand for war risk insurance has surged, compelling both individuals and companies to seek coverage against military risks, with significant payouts from insurers becoming a lifeline in times of crisis.

The ongoing conflicts in Ukraine and the Middle East have led to a booming war risk insurance market. Individuals like Natalia Grishko, whose apartment was damaged by a missile, found solace in having specialized insurance. With millions being spent annually on such policies, the sector is seeing growth driven by both individual and corporate needs for coverage in high-risk areas.

With conflict continuing in Ukraine and the Middle East, a little-explored global industry has never been more in demand – the war risk insurance market.

When a Russian missile damaged Natalia Grishko's apartment in a tower block on the outskirts of Kyiv last November she thankfully was not injured.

Mrs. Grishko's daughter, Alina Kalcheva, says the missile fell about 100m (328ft) from the building. The blast wave damaged my mother's balcony, windows, doors, and the interior of the apartment.\

While her mum was of course very upset and cried to begin with, Mrs. Kalcheva says she ultimately felt calm because they had insured the flat against such an attack.

For while general household insurance doesn't cover conflict damage – whether you live in Ukraine or a country not under attack - Mrs. Kalcheva had had the foresight to take out specialist war risk insurance for her mother. The insurer paid out $1,000 (£740) to help cover the repairs.

The annual premium was $52, and the 33-year-old says she didn't hesitate to buy it. As it turned out it was obviously the right decision.

Fellow Ukrainian Ekaterina Vasylieva took out a war risk policy for her car just in time, as only a day later her vehicle sustained damage from Russian shrapnel.

War risk insurance, a sector that also covers terrorism, has gained traction since the September 11 attacks in the US. While individuals can purchase such insurance, most policies are bought by companies to protect their assets and personnel in volatile regions.

It is estimated that the global expenditure on war risk insurance has reached about $1bn (£800m) per year, predominantly benefiting specialized insurers in London.

Joanna Cousins, who leads a war team at a London insurer, highlights cases where substantial policies of more than £100m were secured for companies operating in high-risk zones to safeguard operations against ongoing violence.

Premiums for war risk insurance currently fluctuate between 0.5% and 2% of the total coverage amount, depending on the profile of risk.

Conversely, for more stable regions, premiums can be significantly lower, creating a diverse landscape within this insurance sector.

Overall, the rising demand for war risk insurance underscores a critical trend amid global instability, offering vital support to those affected by conflict.