Political violence insurance: Asian companies seek stability in multinational solutions

A growing number of Asian companies are exploring multinational insurance solutions for political violence risks as they expand internationally at a time of geopolitical instability.

From US tariffs to the disruptive conflict in the Persian Gulf, geopolitical instability is now front and center for Asia’s executives. It was ranked as the second most concerning global risk by experts in the AXA Future Risks Report 2025, and was cited as the top risk by respondents in Hong Kong.

Wars and armed conflicts have surged in recent years, bringing devastating human consequences alongside supply chain disruption, physical damage and rising costs. There were around 60 conflicts recorded across 36 countries in 2024, and beyond the toll on lives, livelihoods and communities, the economic impact of violence on the global economy was estimated at almost $20 trillion, according to The Peace Research Institute Oslo.

Global perspective

As they look to tap into international markets and navigate tariffs, Asian companies are rapidly expanding their global footprint, investing in infrastructure, manufacturing plants and distribution networks in overseas markets. Asian countries accounted for 71% of the increase in world trade in 2025, according to the WTO. A study by Bain & Co. of 150 public Asia-Pacific-headquartered consumer electronic goods companies found that 58% earn more than half of their revenue from foreign markets.

As Asian companies expand internationally, and as they take a more global and sophisticated view of their risks, they are increasingly looking for more joined-up insurance solutions to protect their assets, operations and supply chains from physical damage and disruption. And in today’s volatile world, this increasingly extends to political violence insurance.

Mind the gaps in cover

Coverage for political violence perils is typically restricted or excluded under traditional property damage and business interruption insurance policies. However, a burgeoning political violence insurance market offers specialist standalone coverages for many of the risks excluded by traditional policies, such as acts of terrorism and sabotage, insurrections, strikes, riots and civil unrest, and even war and civil war. In addition, many territories – including the US, UK, France, Germany and Australia – operate various insurance pools that offer cover mainly property damage and loss resulting from acts of terrorism.

Historically, most multinational companies have relied on a patchwork of coverage from traditional policies, specialist political violence markets and national insurance pools. However, these are often found wanting in an increasingly complex geopolitical risk landscape, leaving many companies with significant, and often not well understood, gaps in cover. A fragmented approach to political violence is also not conducive to monitoring, managing and mitigating this dynamic risk at a global level.

Consistent coverage and control

Multinational insurance solutions are not new, but recent years have seen them evolve to include more complex specialty risks, including political violence and terrorism. These solutions combine a global or regional master policies and local country policies to provide consistent, compliant and cost-effective coverage for a wide range of political violence risks, many of which may not be available in local markets (such as active assailant cover) or at adequate limits.

A global approach to political violence insurance creates a single point of control and co-ordination for political violence coverage, risk consulting and claims, combining local on-the-ground support with global expertise and capacity. It also helps facilitate access to advanced analytics, risk prevention and crisis management services that may not be available in local markets. Typically, a well-designed multinational insurance solution is more cost efficient and will offer broader cover than a decentralized approach.

We’ve recently worked with an Asia-based multinational firm to create a global political violence solution after the client had found it difficult to achieve a balance between cost control and obtaining consistent or adequate coverage certainty across multiple unconnected local policies. Following an assessment of the client’s risks and review of existing cover, we designed a multinational solution that covered political violence risks in the home country and for overseas operations. The resulting fully compliant multinational solution provided consistent terms and conditions and higher local limits along with a considerable premium saving.

Three steps to architect a political violence or terrorism multinational insurance solution

The growth of the political violence insurance market, along with the increasing sophistication of available analytics, threat intelligence and data, is creating opportunities for multinational firms in Asia Pacific to take a global view of political risks and establish long-term solutions that give peace of mind at a time of growing geopolitical instability.

We recommend clients take a three-stage approach to political violence multinational insurance solution.

• Assess the risks: Carry out risk scanning to understand political violence exposures and identify assets, critical suppliers or infrastructure at greatest risk or with high impact consequences. Third parties, including insurers, can support this process with risk assessment tools, intelligence and consulting.
• Review covers: Working with advisors and insurers, carry out a thorough review of existing insurance coverages, including participation in national insurance pools. Map coverages against exposures and various loss scenarios to identify potential gaps or limitations in coverage and potential claims management issues or service requirements.
• Design and deliver: Each and every political violence multinational insurance solution is unique and tailored to the needs and business strategy of the individual insured. By engaging in a thought-through process, it is possible to design and execute a flexible program that accommodates national insurance pools, requirements and regulations. Many companies start small with one or a few overseas countries and build on their multinational program over time.

The key takeaway: Be proactive

Rather than wait for events to overtake you, a proactive and rigorous approach to political violence risk is key. By combining expert advice and specialist insurance under a multinational solution, Asian multinationals can have more certainty that their assets and operations are adequately protected in today’s fast changing international environment.