Terrorism and Political Violence Insurance Is Not a Commodity — It’s a Strategic Asset

In many emerging markets, terrorism and political violence (TPV) insurance is treated as a commodity — a box to tick, priced down to the lowest number, and filed away with little thought. It’s often bundled into broader programs, bought in bulk, and rarely scrutinized beyond the premium.

But in regions where conflict, unrest, and rapid political change are part of the business environment, that mindset isn’t just outdated — it’s a serious liability.

The Illusion of Simplicity

When a major global city is hit by a bombing, it makes headlines and drives short-term spikes in insurance demand. But in much of the emerging world, the threats are more subtle, more frequent, and often more disruptive: a low-level insurgency disrupting supply chains, a localized riot sparked by economic hardship, or a sudden coup that halts operations for weeks.

Yet most insurance policies don’t reflect this complexity. They're generic, inflexible, and disconnected from the ground realities businesses face in cities like Lagos, Nairobi, Karachi, Beirut, or Almaty. And when something goes wrong — especially in places where risk is layered and fast-changing — the protection often doesn’t hold up.

Why “Off-the-Shelf” Doesn’t Work in Emerging Markets

In emerging markets, risk is contextual. Political, social, and economic pressures intersect differently in every country — sometimes in every province. A construction company working on infrastructure projects in Northern Mozambique faces a vastly different threat environment than a telecom provider expanding in rural Pakistan.

A one-size-fits-all policy built in London or Singapore doesn’t protect these businesses. In fact, it often leaves them dangerously underinsured. Risk is local — and coverage must be too.

Brokers Must Do Better

Too often, brokers in emerging markets approach terrorism and political violence insurance like any other transaction. Their focus is on volume, not value. They chase the lowest premium to win the business, often without fully understanding the client’s exposure or even the actual policy wording. The result: templated coverage, little to no risk advice, and no post-placement engagement.

And it begs the question: how relevant are brokers today if their only concern is price, not protection?

In a world where clients can access digital tools, security data, and market comparisons — especially in fast-digitizing regions — simply moving paper is no longer enough. If a broker doesn’t bring insight, what exactly are they bringing to the table?

To remain relevant and deliver real value, brokers must step into the role of risk advisor and product co-creator. That means working hand-in-hand with insurers and reinsurers — not just to find capacity, but to develop flexible, responsive products that reflect the unique threat environments their clients face. Coverage shouldn't be a recycled PDF — it should be a dynamic tool shaped by local realities, risk data, and evolving exposures.

In many parts of the world, particularly across emerging markets, the reinsurance chain is long and fragmented. Capacity may originate in London, Dubai, or Singapore — but by the time a policy reaches the ground, the specialist advice and product education have often been lost along the way. The end buyer — the business owner relying on this cover to protect their staff, assets, and operations — may never actually understand what they’re buying. That disconnect leads to poor coverage decisions, misaligned expectations, and dangerous gaps at the moment of truth.

In emerging markets especially, where risk profiles shift quickly and often, off-the-shelf wordings and price-driven policies are not just inadequate — they’re irresponsible.

Value Over Price: The Hormozi Principle

As Alex Hormozi writes in $100M Offers, every purchase falls on a spectrum between price-driven and value-driven. Price-driven buyers focus on what something costs. Value-driven buyers focus on what they get — outcomes, protection, upside.

The terrorism and political violence insurance market today is built almost entirely for price-driven buyers. And brokers feed that cycle. But businesses operating in fragile or frontier markets don’t need the cheapest coverage. They need the right coverage at the right price. One that reflects their reality — not a template designed for somewhere else.

Because in emerging markets, the cheapest policy is often the most expensive mistake.

Towards Smart, Adaptive Protection

It’s time to reposition terrorism and political violence insurance as a strategic tool — especially in markets where volatility is part of daily operations. Coverage must be flexible. It must be backed by real-time intelligence, local expertise, and historical data. It must evolve as the threat environment does.

With advances in AI, mapping tools, and risk modeling platforms, we now have the ability to deliver this kind of insurance experience — one that doesn’t just indemnify, but helps businesses prepare, protect, and adapt.

The Cost of Underinsurance

In many emerging regions, businesses don’t just face risk — they absorb it. And when a crisis strikes, access to capital, political support, or reliable infrastructure isn’t guaranteed. The margin for survival is razor-thin.

That’s why underinsurance is so dangerous. Gaps in coverage, weak definitions, or inappropriate exclusions can turn a manageable event into a business-ending one. And by the time it becomes clear the policy doesn’t respond, it’s already too late.

A Call for Change

If you're operating in an emerging market, ask yourself:

• Does your policy reflect the threats you face?

• Is your broker helping you understand those threats?

• Is your coverage evolving as your business grows or shifts?

Because terrorism and political violence insurance is no longer about checking a box. It’s about securing operations in uncertain environments. It’s about seeing around corners. It’s about resilience.

At Resilient Frontiers, we believe the future of TPV insurance lies in intelligence, not inertia. In emerging markets especially, this is more than a policy. It’s a survival strategy.

Stay Resilient