Global Conflicts Fuel Surge in War Risk Insurance

With wars raging in Ukraine and the Middle East, demand for the once-niche war risk insurance market has soared worldwide.

In Ukraine, residents like Natalia Grishko and Ekaterina Vasylieva say specialist insurance proved invaluable after Russian missile and shrapnel strikes damaged their homes and cars. While standard policies exclude conflict damage, dedicated war risk cover provided payouts for repairs.

Industry experts say the global market is now worth around $1bn a year, with nearly 80% of policies handled through London’s insurance sector. The cover is most often bought by businesses operating in volatile regions, from energy sites in Iraq to shipping firms and airlines exposed to conflict zones.

The sharp rise reflects how conflict-driven risks are reshaping global insurance trends — turning war risk cover from a specialist product into a growing necessity.