Crisis Management Teams Navigate Surge in Threats as Terrorism Insurance Prices Fall

Why It Matters

Lower terrorism premiums and expanded limits give organizations affordable, broader protection amid escalating domestic threats, reshaping risk‑management priorities.

Key Takeaways

• Threat notifications up 33% in 2025, 37% of incidents
• Two‑thirds of threats originated in the United States
• U.S. terrorism premiums fell 10.4% Q4 2025, some 40% discounts
• Coverage limits rose above $2 billion, $500 million per line
• Over 25 underwriters across 14 insurers now offer terrorism policies

Pulse Analysis

The surge in politically motivated violence across the United States in 2025 has forced crisis‑management teams to confront a new reality. Active‑assailant incidents, from the Manhattan office tower attack to the Minneapolis school shooting, now represent 70% of U.S. threat notifications. Simultaneously, high‑profile political assassinations demonstrate how digital footprints enable precise targeting. These trends underscore a broader shift: threats are no longer confined to traditional terror hotspots but are spreading into everyday workplaces, schools, and public venues, demanding more nuanced security strategies.

Against this backdrop, the terrorism insurance market has moved in the opposite direction. WTW’s U.S. Terrorism Insurance Index reports an average 10.4% premium reduction in the fourth quarter of 2025, with some policies seeing discounts as deep as 40%. Capacity has also expanded, with total limits surpassing $2 billion and individual lines reaching $500 million. The influx of new underwriters—over 25 across 14 carriers—reflects intensified competition and a capital‑driven soft‑pricing cycle, rather than a reassessment of underlying risk.

For risk managers, the price‑softening presents both opportunity and responsibility. Affordable, high‑limit coverage now makes it feasible to address previously uninsurable perils such as cyber‑linked attacks, active‑assailant events, riots, and malicious damage. Companies should evaluate whether standalone terrorism policies can provide more comprehensive protection than legacy TRIA‑linked solutions. By aligning coverage with the evolving threat landscape, organizations can mitigate financial exposure while supporting broader resilience initiatives in an increasingly volatile security environment.