The latest Political Risk Index from WTW has highlighted the growing threat faced by grey zone targets from acts of aggression that aim to weaken a country but fall short of being seen as acts of war. Such targets include vessels, undersea cables and offshore oil installations.

Samuel Wilkin, director of political risk analytics at WTW, said: “Without insurance, many ships will not sail and planes will not fly, so improving our understanding of grey zone risks is vital for the protection of people and assets and the health of global commerce.

“These attacks appear to have soared in recent years, for many reasons. One reason is that countries that are deeply interconnected by globalisation increasingly find themselves in adversarial relationships, and these deep interconnections offer many avenues for grey zone action, especially actions directed at globalised businesses.

“Another reason is that new technologies have enabled grey zone actions, including cyber attacks and remote attacks by drones. Hybrid warfare is likely to continue to rise and evolve, so insurers need to be able to understand the implications of ambiguous grey zone activities to properly assess risk.”

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