Marsh states that primary representations and warranties (R&W) insurance rates rose across most regions during the year, reversing a three-year trend of falling premiums. The firm links this shift to higher levels of merger and acquisition (M&A) activity alongside an increase in claims.

According to Marsh, North America saw the most pronounced rise, with average primary R&W premium rates increasing by 16% year-over-year in 2025, compared with a 14% decline in 2024. In Asia, rates rose by 8% following a 24% decrease the previous year.

The firm also highlights that global M&A activity reached elevated levels, with total deal value approaching $5 trillion in 2025. Deal values increased by 37% compared with 2024, while deal count grew by 12%. This growth was largely driven by larger transactions, including 70 deals valued above $10 billion—an 81% increase year-over-year—and 617 deals exceeding $1 billion.

Alongside this activity, Marsh reports that both the frequency and severity of claims increased. The United Kingdom recorded historically high levels of notifications and payouts, while Europe saw claims double and Asia experienced notable growth. In North America, notifications declined slightly, but total loss payments reached a record high.

Marsh further notes that it placed $91.6 billion in transactional risk insurance limits globally in 2025, representing a 34% increase, across more than 3,800 policies and nearly 1,800 transactions. The firm also reports strong growth in tax insurance, with policy numbers rising by 82% in North America. In Europe, policy volumes increased by more than 50%, while insured limits more than doubled compared with the previous year.

Finally, Marsh indicates a continued shift in buyer composition. For the third year in a row, a larger share of transactional risk insurance programmes was arranged for corporate and strategic buyers (53%) than for private equity firms (47%), suggesting an ongoing change in market dynamics.

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The report highlights that modern terrorism threats have evolved from hierarchical, property-focused assaults to dispersed networks employing diverse tactics, including cyberattacks, political violence, and emerging nuclear, biological, chemical, and radiological (NBCR) threats.

Recent low-sophistication physical attacks, like the 2025 New Orleans truck ramming and the Bondi Beach assault, reveal the significant human and business cost.

At the same time, terrorism-related cyberattacks are halting supply chains and amplifying economic disruption by crippling critical systems and global operations, demonstrating the dual threat of modern terrorism.

“This shift demands adaptive risk management strategies and insurance solutions that address emerging threats,” Marsh states.

Despite these challenges, the insurance and reinsurance markets continue to demonstrate resilience; standalone policies often provide broader coverage terms, and re/insurers are able to offer per risk capacity between $1 billion to $4 billion, depending on the location(s) insured and insurer aggregation positions, the report said.

Total capital for the combined US insurance and reinsurance market contemplating all perils, including terrorism, was estimated to be approximately $1.2 trillion in 2025.

Central to this stability in the US is the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA), which provides a vital federal backstop and is set to expire at the end of 2027.

By sharing catastrophic losses between the public and private sectors. Its framework limits insurers’ exposure through individual deductibles and industry-wide thresholds, enabling insurers to offer terrorism coverage with greater confidence and predictability.

“This federal support is essential for maintaining insurer capacity, protecting balance sheets, and promoting competitive pricing across commercial lines, particularly as terrorism risks expand beyond traditional urban centers,” Marsh explains.

The report underscores that public-private partnerships – often appearing as terrorism risk pools – are essential for global economic continuity.

These public-private partnerships blend government regulation and resources with private insurers’ expertise, fostering custom solutions like standalone terrorism and political violence policies, captive insurance, and coverage for nonphysical/cyber damage.

They also aid in establishing reinsurance to fill protection gaps and attract alternative capital.

Tarique Nageer, Terrorism Placement Advisor, Marsh Risk, said: “Heightened geopolitical tensions, including the ongoing US–Iran conflict, are driving an increasingly complex and evolving terrorism threat landscape that is blurring the lines between terrorism, political violence, and civil unrest.

“TRIPRA has been instrumental in creating and maintaining re/insurance market stability, and its reauthorization is vital to enable us to continue having nuanced, solutions-based conversations with clients about their unique vulnerabilities as emerging threats to businesses around the world evolve at a rapid pace.”

Emil Metropoulos, Terrorism Center of Excellence Leader, Guy Carpenter, added: “Together, TRIPRA and other public-private partnerships around the world form a more balanced and sustainable ecosystem that anchors systemic risk, fosters greater market confidence, and broadens available protection for policyholders.

“This collaborative approach not only mitigates the financial impact of terrorism but also strengthens national resilience, ensuring that businesses, workers, and communities are better protected against the multifaceted and evolving terrorism risks of today and tomorrow.”

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BX1 provides US clients facing a demanding casualty market with a unified $50 million block of excess casualty capacity.

With consolidated capacity from leading Bermuda insurers Ascot, Markel, Ark, and Sompo, this Marsh Bermuda contract guarantees placement certainty and features superior policy terms tailored for complex risk needs, the firm stated.

This structure helps simplify documentation and claims handling by providing a single claims decision-maker and contact, reducing administrative complexity and claims expenses for clients.

The policy is issued on the proprietary Marsh XSellence excess casualty form delivering follow-form coverage and includes affirmative coverage for punitive damage.

Notably, it includes punitive damages, a crucial insurance protection frequently excluded or restricted in standard casualty programs.

BX1 is structured to accommodate the needs of intricate casualty placements across nearly all industries, offering a minimum attachment point of just $10 million, with the flexibility to attach at higher limits.

Commenting on the facility, Lindsay Roos, Bermuda CEO, Marsh Risk International Placement: “The US casualty market continues to present significant challenges, with increasing complexity and exposure for clients.

“BX1 addresses these challenges by offering a large, consolidated block of capacity with placement certainty and streamlined claims handling. This facility provides our clients with clarity, enhanced coverage, and the confidence to navigate a demanding liability environment with greater ease.”

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Speaking during the recent Digital Infrastructure Press Webinar hosted by Marsh, Mike Matthews, Global Digital Infrastructure Leader at Marsh, said that the unprecedented size and scale of today’s data centres make insuring these assets challenging.

“What we’re seeing right now is just sheer size and scope,” he said. “You have a $4 billion data centre with $10 billion worth of equipment in a single site facility. So, the size and scale is the challenge. And stacking that risk with multiple partners and carriers is obviously going to be the trend.”

Matthews noted that these projects require a lot of risk engineering upfront, including catastrophe modelling and site design.

“We talk about the acquisition phase—pre-development—so acquiring capital, land, power, tenant, you really have to evaluate all of that prior to making the investment as an investor. Getting that right upfront, looking at everything from the right EPCs, engineers, architects, designs, and proven technology, that all goes into that risk engineering process pre-insurance. And then all the capital in the reinsurance markets that we’re going to get creative with over the next few years, I think that’s going to be an integral part of the successful insurance modelling of these projects,” said Matthews.

Jeremy Goodman, Chief Client & Growth Officer for Guy Carpenter, the reinsurance broking arm of Marsh, reiterated that the data centre asset is insurable, but its coverage depends on whether insurers and reinsurers understand the risk, can quantify it, can measure the exposure, etc.

“The terms, conditions, coverage, and the capacity that is available will reflect the insurers and reinsurers’ knowledge and understanding of that particular asset,” Goodman explained.

He added, “Those that engage the insurers and reinsurers to help them understand how they’re approaching the project, how it’s going to be built, which contractors are going to be used and so on, will increase that comfort level. Overall, to meet a lot of the needs and the fast pace with which this is moving, there can be improved communication and engagement between the various different sponsors and principals, and the insurers and reinsurers, that will increase the knowledge, the understanding and the comfort level. As a result, I think that capital that is sitting on the sidelines, to some degree, within the reinsurance market will be more inclined to be able to come forward and deploy.”

Goodman emphasised that this will need to be done “a little more thoughtfully than it has in the past,” moving away from a site-by-site approach toward an interconnected ecosystem, enabling capital to be deployed at scale efficiently and sustainably.

During the webinar, Goodman also said that digital infrastructure represents one of the most significant capital deployment opportunities for the reinsurance market in a generation.

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Both Studer and South will continue to serve on the company’s Executive Committee and report to John Doyle, President and CEO of Marsh.

Studer currently serves as CEO of Oliver Wyman and Marsh Management Consulting. He brings nearly three decades of industry experience, having joined Oliver Wyman in 1997, and has served in senior consulting roles across its consumer, industrial, and financial services practices.

He has also served on several cross-industry organisations, including as a founding director of TheCityUK and on the founding advisory board of the FICC Markets Standards Board.

South rejoined Marsh in 2007 and served as CEO of the business in multiple regions, including Asia-Pacific, UK and Ireland, Europe, and US and Canada, before becoming President and CEO of Marsh Risk in 2022.

He initially joined the company in 1985 with Bowring Marsh. He also held leadership roles at Zurich Financial Services, where he was a member of the Group Management Board, responsible for all of Zurich’s operations outside of North America and Europe, and CEO of Zurich’s London operations.

Doyle commented, “Our vision is to make Marsh the most impactful professional services firm in the world. These appointments will help us accelerate growth, increase our agility, unlock additional value for our clients, and realize our vision.

“Nick joined Oliver Wyman nearly 30 years ago, and in the last five years, as its CEO, has driven tremendous growth. His experience advising corporate and public sector leaders on risk and transformation makes Nick the ideal executive to continue Marsh Risk’s market leadership and further its trajectory of growth and service excellence.

“Martin has decades of experience serving clients and driving innovation. He has deep relationships across industries, and as Chief Client Officer, will bring our unique capabilities together to help clients navigate this highly complex macro environment. Martin will also work to apply AI and other new technologies to enhance the client experience. I look forward to the contributions both will continue to make to our clients’ and Marsh’s success.”

Studer said, “I am honored to lead Marsh Risk and delighted to be carrying forward our mission to grow a paradigm-shifting risk advisor, all-connected risk intermediary, and passionate advocate for our clients. This business has always had the most talented and dedicated risk and insurance professionals in the world. With our team, robust data and analytics, and AI-enhanced client experience, we will continue to help clients protect what matters most: their people, assets, and future.”

South added, “A touchstone of Marsh, across all our businesses, is that we put clients at the center of everything we do. With the power and breadth of our expertise and a keen understanding of our clients’ needs, we can serve them like no other professional services firm.

“I am excited for the opportunity to continue to increase our client impact and help to accelerate growth in this new role.”

Marsh revealed that it expects to announce a new CEO of Oliver Wyman and Marsh Management Consulting by 1st April 2026.

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The discussion featured Jeremy Goodman, Chief Client & Growth Officer for Guy Carpenter, the reinsurance business of Marsh, who outlined how the industry is adapting to the surge in large-scale digital infrastructure projects and the growing need for new insurance structures.

Goodman, reflecting on more than four decades in the insurance industry, highlighted how the role of data centres within the risk landscape has changed.

“The reinsurance market’s been underwriting data centres for decades,” Goodman said. “What has changed? It’s not the asset class, it’s the scale and the concentration.”

According to Goodman, the current development pipeline illustrates just how quickly the sector is expanding. “We’re currently tracking more than 1500 data centre projects globally, with over 900 of them still in planning, and more than 50 projects exceeding seven and a half billion dollars in capital,” he said, noting that many of these developments are clustered around major power hubs in the United States.

“That level of pipeline and capital intensity is unprecedented for what was historically viewed as a diversified commercial property segment,” he explained. “Digital infrastructure is shifting the diversified commercial property segment to more of a systemically concentrated infrastructure risk, and reinsurance needs to evolve from being transactional capacity to structural capital architecture.”

Goodman emphasised that while the nature of the asset class itself is not new, the magnitude of exposure has changed significantly.

At the same time, he pointed to the considerable amount of capital available to support the sector. “There’s an excess of $650 billion of dedicated global reinsurance capital, and that’s growing at roughly 10% year over year,” Goodman said. “About $125 billion of that capital now comes from alternative sources – pension funds, sovereign wealth funds, institutional investors – all seeking diversified asset classes.”

“So, the issue is not a shortage of capital,” he added. “The issue is how efficiently and intelligently we can deploy that capital and structure it.”

Ultimately, Goodman feels that “digital infrastructure represents one of the most significant capital deployment opportunities for the reinsurance market in a generation,” but he was quick to note that there are some shifts taking place.

One of the most significant structural changes involves the way large data centre campuses are being developed. “These large AI enabled campuses are clustering around constrained power nodes,” Goodman said. “These campuses share transmission infrastructure, substations, cooling systems, and often similar supply chains.”

This interconnected infrastructure means a single failure could affect multiple sites at once. “A single transform or a grid outage or extreme weather event can impact multiple campuses simultaneously,” he explained. “And given the size of these hyperscale campuses, the severity of loss escalates materially, both for property damage, delay in startup, and business interruption.”

As a result, reinsurers are increasingly assessing risks at an ecosystem level rather than looking at individual facilities. “Reinsurers are increasingly underwriting these ecosystems, not just the individual buildings,” Goodman said. “Data centres are no longer just large buildings, they’re concentrated power ecosystems.”

The market is beginning to respond with new insurance structures. Goodman pointed to “portfolio placements, sponsored risk pools and mutual structures that are supported by quota share and collateralised reinsurance” as examples of how capital can be deployed more efficiently across multiple projects.

Another development involves construction portfolio programmes. “We’re also seeing innovation in construction. Portfolio builders risk programmes can predefine eligibility criteria, engineering standards and risk controls across multiple projects,” he said. This approach allows developers to place several builds under a single framework rather than constructing separate insurance towers for each project. “When the projects scale, the insurance programme has to scale with them, structurally, not incrementally,” Goodman noted.

To conclude his opening remarks, Goodman said: “The market is not retreating from digital infrastructure, it’s innovating around it. And with more than 1500 projects globally, dozens exceeding seven and a half billion, digital infrastructure has become systemically important, and the strategic implications for the reinsurance sector are clear. It’s one of the largest capital deployment opportunities, but it requires a shift in mindset from transactional placement to structural capital architecture. From insuring buildings to underwriting interconnected infrastructure systems.

“The opportunity is significant. The capital exists. The challenge is our ability to structure intelligently, manage the aggregation rigorously and aligning deployment with multi-campus growth pipelines. And as digital infrastructure scales, risk capital must evolve from annually placement to strategic capital architecture.”

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In this role, Wischmeyer will lead Marsh’s contract strategy across leases, customer agreements, vendor contracts, and partnerships, helping clients navigate risks associated with asset lifecycles and reinvestment timing.

He brings 12 years of specialised legal and commercial expertise in the digital infrastructure and data centre ecosystem.

Wischmeyer joins Marsh from Ark Data Centers, where he served as General Counsel, leading legal strategy and execution within the digital infrastructure sector, aligning legal operations with business objectives across construction law, real estate transactions, land use, and regulatory compliance.

Prior to that, he served as Executive Vice President and General Counsel of Everstream Solutions, where he led risk management, acquisitions, integrations, and refinancing. He also held legal roles at Crown Castle and Lightower Networks.

Mike Mathews, Global Digital Infrastructure Practice Leader at Marsh, commented, “The digital infrastructure industry faces unique contractual complexities due to the differing lifecycles of assets, leases, and revenue agreements. Navigating these overlapping timelines requires specialised expertise to manage risk effectively and drive operational success. Dereck’s extensive legal background and hands-on experience in this ecosystem will be critical in helping our clients align contract strategies with these complexities, ultimately enhancing risk management and value creation across the industry.”

Wischmeyer said, “Joining Marsh represents a tremendous opportunity to leverage my experience on the client side to help companies manage the intricate risks inherent in digital infrastructure. I look forward to collaborating with Marsh’s talented teams to deliver strategic value and support our clients’ long-term success in this transformative sector.”

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On February 28th, 2026, the US and Israel hit Iranian military targets, to which Iran responded by launching missiles and drones at US bases and regional allies.

The geopolitical shock in the region increases underwriting and investment challenges for numerous lines of insurance business, notably marine, aviation, property, travel, and supply-change.

“It is very early to tell at this point, but we would estimate that near-term rate increases for Marine Hull insurance in the Gulf could range from 25 to 50 percent, barring any direct attack on Merchant shipping, which could have major repercussions across war insurance rates. Given the military build-up in the region, crew are far more likely to be concerned than they might have been to previous risks. The situation remains very fluid, requiring ongoing attention,” said Mortimer.

According to the Financial Times, insurance companies have told ship owners that they would cancel policies and lift prices for vessels passing through the Gulf and Strait of Hormuz, a vital sea passage from the Persian Gulf to the open ocean.

Insurance brokers also told the Financial Times that war risk insurers have already submitted cancellation notices for insurance policies covering ships moving through the Strait of Hormuz.

News reports suggest that over 200 vessels dropped anchor in the area. Last year, the Strait saw over 14 million barrels passing per day. “The primary risks centre on the Persian and Arabian Gulf, particularly the threat of vessel boarding and seizure by Iranian forces and the potential closure of the Strait of Hormuz,” explained Mortimer.

It’s been revealed that shipping company Maersk paused sailings through Bab el-Mandeb and the Strait of Hormuz, while marine insurer Skuld has cancelled war risk cover. Skuld emphasises the evident tightening of reinsurers’ appetite for war‑risk exposure, which the Association says will result in reinsurers withdrawing capacity at short notice.

At the same time, Indian public sector reinsurer, General Insurance Corporation of India (GIC Re), will withdraw marine hull war risk cover in several high-risk global regions, according to CNBC TV 18, citing an official notice issued by the company.

According to Stephen Rudman, Head of Marine, Asia, Aon, underwriters are withdrawing or revising existing quoted additional premiums (APs) for transits through listed high-risk areas, with the reinstatement of cover being offered at materially increased rates.

Additionally, he explained that there is a heightened underwriting scrutiny for voyages into or near sensitive zones, including a potential requirement for prior approval.

Rudman says that it is important to note that these moves relate specifically to war risk extensions. Core hull and machinery and P&I covers remain in place unless otherwise advised.

Looking at the hull war market, Rudman believes that it has reacted more immediately due to aggregation exposure and capital sensitivity. He said, “Additional premiums for vessels transiting high-risk waters are rising sharply and may continue to fluctuate in the short term. Cargo war risk remains available; however, rates are increasing, and quotations are being reviewed on a voyage-by-voyage basis, particularly for energy and bulk commodity trades.”

Rudman explained that, right now, broker Aon is not seeing a systemic withdrawal of capacity. Rather, the market is repricing to reflect the elevated risk profile and reinsurance constraints. Should the situation escalate materially (e.g., sustained state conflict or significant vessel loss), further rate correction is likely, he warned.

Aon recommend that clients review war cancellation provisions within existing policies, engage with brokers early, before fixing voyages in high-risk areas, assess charterparty war clauses and allocation of additional premiums, and factor potential AP volatility into freight and commercial planning.

Rudman said, “Our marine team continues to monitor developments closely and is in active dialogue with London and international markets.”

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According to Marsh, this period represents a level of complexity not seen in decades, with implications for trade, finance, conflict, and digital infrastructure.

Marsh suggests that organisations that view this environment as a catalyst for innovation, differentiation, and expansion, rather than solely as a source of disruption, are better placed to maintain strategic agility and achieve long-term advantages.

In its Political Risk Report, Marsh outlines the main trends in the political and economic landscape likely to affect multinational corporations and investors over the coming year.

The report notes that while business leaders anticipate substantial geopolitical change and global restructuring, they often devote insufficient time to understanding the strategic consequences, focusing instead on short-term volatility.

Marsh emphasises that exposure to geopolitical developments will vary according to a company’s location, sector, and preparedness. Nonetheless, most organisations can expect pressures on both physical and digital supply chains, potential disruption from conflicts, both physical and cyber, and growing political influence over decision-making. Digital infrastructure, including data centres, cloud services, and satellite communications, is increasingly viewed by governments through a competitive geopolitical lens as part of the Industry 4.0 race.

According to Marsh, assessing how changes in the US-influenced international framework will affect operations should form the basis of long-term risk management strategies. These strategies should combine traditional risk transfer measures with proactive resilience-building.

The report also notes practical solutions recommended by Marsh, such as credit and political risk insurance and surety guarantees, which can support credit risk management, stabilise cash flow, and mitigate exposure to counterparty defaults and geopolitical uncertainties.

Angela Duca, Global Head, Credit Specialties, Marsh Risk, commented: “An accelerating geopolitical transition is ushering in an era of heightened complexity unseen in decades, while also creating significant opportunities that prepared firms can use to help turn the emergence of the new world order into a powerful vehicle for opportunity, differentiation, and expansion.

“A shared leadership perspective on the prospects for geopolitical change, when integrated into the planning process and across operational domains, can provide greater clarity and confidence to continue taking risks, pursuing investments, and growing trade in a difficult climate as new allegiances in the global trade architecture emerge.”

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Harrison brings more than three decades of experience in investment management and executive leadership.

He retired from Schroders plc in 2024 after working at the firm for over a decade, serving as Chief Executive Officer from 2016 and previously as Global Head of Investment.

Earlier in his career, Harrison led RWC Partners (now RedWheel) as Chairman and CEO from 2006 to 2013 and served as Global Chief Investment Officer of Deutsche Bank’s asset management businesses.

He currently serves as Chair of the Board of Morgan Sindall plc and is on the Board of Directors of Lazard, Inc. He is involved in the UK Capital Markets Industry Taskforce and is Chair of Business in the Community. Harrison also serves on the UK Economy Honours Committee and as an advisor to FCLT Global.

H. Edward Hanway, Chair of Marsh’s Board of Directors, said, “We are pleased to welcome Peter as a director. We are committed to ensuring the right blend of skills and experience on our Board, and Peter’s investment and global leadership experience aligns with Marsh’s vision for growth and innovation.”

John Doyle, President and CEO of Marsh, added, “Peter’s proven track record as a financial services CEO, as well as his experience in asset management, will offer a valuable perspective as we further our efforts to deliver even greater value to our clients, colleagues, investors and communities.”

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