The International Insurance Council (IIC) has opened a review of its Five Powers exclusion, which bars coverage for losses caused by hostile actions among the United States, China, Russia, the United Kingdom and France. Insurers contend the Cold‑War‑era clause fails to capture contemporary threats such as cyber sabotage or kinetic attacks.

The council proposes to broaden the definition to cover hostile drone incursions, underwater cable attacks and other non‑conventional weapons that could cripple supply chains or critical infrastructure. By codifying these scenarios, underwriters aim to price premiums more precisely and reduce litigation over claim denials that have surged since 2022.

Adoption of the revised wording would trigger insurers to issue new endorsements, forcing corporations to audit existing policies for gaps and likely driving up underwriting costs. European and Asian regulators have already voiced support for clearer war‑risk language, indicating a coordinated push to align insurance contracts with evolving geopolitical risk profiles.

The IIC’s move signals a shift toward more granular war‑risk underwriting, a development that could reshape premium structures across global markets. Insurers that adapt quickly will capture demand for tailored coverage, while firms lagging behind may face higher exposure and limited protection options.