Ace the OTL Challenge 2026 – Unlock Your Insurance Success Story!

War or acts of terrorism are considered uninsurable risks primarily due to their unpredictable nature and the significant potential for widespread loss and damage they entail. Insurers calculate risk based on historical data and assess the likelihood of an event occurring; however, the chaotic and global impact of war or terrorism makes it nearly impossible to predict frequency or severity. Because these events can lead to catastrophic losses that challenge the financial stability of insurance companies, underwriters typically exclude them from standard insurance policies.

On the contrary, while natural disasters and health-related issues are significant risks, they are often insurable with specific products designed to cover them. Property damage is also insurable, as it is generally assessable and manageable within the parameters of insurance risk assessment.