With global conflicts at historically high levels and political instability driven by an unpredictable US administration, war and political risks coverage is more relevant than ever. The factual circumstances in which claims arise are often, by their very nature, sensitive and contentious, creating fertile ground for coverage disputes in these lines of business. It is unsurprising, then, that war risks coverage has assumed a high profile in English coverage litigation in 2025.

Therefore, the war and political risk chapter of the Policyholder Review 2026 is essential reading for any organisation seeking to mitigate its exposure to global risks. Please find extracts from the chapter by senior associate Hebe Swain here: A further ‘WIN WIN’ for a policyholder claiming under a war and political risks policy.

This year saw an important Court of Appeal decision in Delos Shipholding SA & Ors v Allianz Global Corporate and Specialty SE & Ors (“WIN WIN”) [2025] EWCA Civ 1019, which considered the application of an exclusion in a marine war risks policy. The insurance claim revolved around the detention of the vessel WIN WIN on 17 February 2019 after it anchored just inside Indonesian territorial waters without permission.

Tariffs, tariffs and more tariffs

One of the watchwords for political risk in 2025 has to be tariffs. The impact of volatile political trade decisions has been significant, particularly for businesses with global supply chains.

Most political risk policies deal with risks affecting tangible property (such as expropriation, political violence and forced abandonment) or currency inconvertibility. For this reason, while wordings should always be checked and policy scopes vary, the majority of political risk policies are unlikely to respond directly to the commercial impact of tariff changes. Yet the effect of the numerous global tariff increases has been broad and far‑reaching, extending into other lines of insurance.