As we enter 2026, global terrorism has become more fragmented and unpredictable. Established indicators and analytical approaches are less effective as shifting geopolitics, increased state proxy involvement, technological innovation by terrorist groups and reduced counterterrorism focus changes the risk landscape.
Terrorist groups are adapting fast, learning from each other and exploiting global vulnerabilities. This assessment outlines 2026’s key terrorism risks and the challenges they pose to insurers and risk managers.
Since the mid-2010s, Sunni militant organizations such as ISIS and al-Qaeda have recalibrated their strategic posture away from complex globally orchestrated operations and have instead embedded themselves within localized insurgencies across the Middle East, Africa and South Asia. In 2026, this shift will no longer be a trend, but will become a defining feature of modern jihadist strategy. These groups now draw legitimacy from local grievances, framing themselves as community defenders rather than global revolutionaries.
The 2025 Pahalgam attack in Jammu and Kashmir captures this evolution. The attack was tactical, lethal and operationally disciplined, yet it lacked any global propaganda framing. Instead, its objective was to shape local political conditions and accentuate regional fault lines. Similar dynamics now shape conflicts in Yemen, Somalia, Syria and the Sahel, where jihadist factions have become quasi-state actors: collecting taxes, administering justice, governing populations and directly challenging national governments.
These groups now blend into their environments, making them harder for counterterrorism agencies to track. Operationally, these groups have incorporated commercial drones, encrypted communications and regionally targeted propaganda to remain agile as well as resilient.
Their local roots present a significant challenge for intelligence agencies. While the threat of large, spectacular attacks may have receded, the rise of small, locally embedded cells deeply familiar with the terrain and operating within local narratives makes detection far more difficult. These micro-insurgencies thrive in physical and digital safe havens, forming an agile threat that current tools struggle to contain.
Yet even as organizational strategy has localized, transnational jihadist narratives continue to shape individual radicalization. Although details remain under investigation, the December 2025 Bondi Beach shooting in Australia carried out by a father and son reportedly inspired by ISIS propaganda illustrates this pattern. The attack appears self-directed, following a period of ideological indoctrination and rudimentary preparation, and was driven by online networks rather than coordinated by any centralized jihadist organization. Such incidents underscore how ISIS’s ideological reach persists even as its centralized capacity has diminished, reinforcing that while jihadist ideology circulates globally, the strategic center of militancy has largely shifted toward territorial insurgencies.
The continued rise of ideologically motivated extremism, driven largely by lone actors and fringe political movements, will also become a major theme in defining the global terrorism risk landscape in 2026. Although rhetoric-driven violence is not new, the intersection of political hyper-polarization, permissive online ecosystems and weakened institutional guardrails has created a fractured feedback loop in which incendiary narratives rapidly translate into violent action.
Recent incidents across various countries illustrate how quickly this dynamic is accelerating. The assassination of conservative activist Charlie Kirk in 2025 marked an escalation in U.S. domestic political violence. In Germany, the arrest of five teenagers linked to the far-right group Last Wave of Defense underscored the growing threat posed by digitally networked extremist cells aiming to undermine democratic institutions. At the transnational level, the U.S. State Department’s 2025 designation of the Terrorgram Collective, a neo-Nazi accelerationist network operating on Telegram, highlighted the capacity of digital ecosystems to inspire or facilitate attacks across borders, from the 2022 Bratislava LGBTQ bar shooting to disrupted plots in Turkey and the U.S.
Meanwhile, communal violence in India surged throughout 2025. Riots in Nagpur over demands to remove the tomb of Mughal emperor Aurangzeb and subsequent violence in West Bengal’s Murshidabad district following disputes over the Waqf Amendment Act revealed how local political grievances can rapidly escalate into mass unrest. In both incidents, socially divisive narratives amplified online precipitated real-world violence, entrenching mistrust and deepening communal fractures.
Taken together, these developments show how political polarization has fractured the global terrorism landscape into a patchwork of ideologically driven threats. Traditional labels no longer reflect the diverse actors now resorting to violence. Instead, online amplification has produced a fragmented environment where individuals and small cells radicalize quickly, quietly, and often without any direct organizational guidance.
As we noted in our 2025 outlook, what started as a covert tactic has now become the new face of state-sponsored terrorism, a regular playbook for governments looking to carry out terrorism without getting caught. Instead of using proxy militias, many states are now turning to criminal networks and loosely connected operatives to strike without leaving a clear trail. This approach makes attribution harder and adds to the burden on already stretched counterterrorism agencies.
Russia’s recent activity offers a clear example of how this model now works in practice. Sabotage operations across Europe have increased, with the Glavnoye Razvedyvatelnoye Upravlenie (GRU) coordinating attacks through criminal actors recruited on encrypted platforms. These operations have intensified after European governments expelled Russian intelligence personnel. As official cover diminished, Moscow has now leaned heavily on criminal proxies, further blurring the line between state activity and organized crime.
Iran has also continued to leverage its longstanding proxy architecture. In July 2025, U.S. forces intercepted roughly 750 tons of Iranian weapons bound for groups such as the Houthis and Hezbollah, while Dutch intelligence linked Tehran to assassination attempts in Europe executed through criminal networks targeting regime dissidents. These activities reflect a deliberate strategy of externalizing risk while preserving plausible deniability.
This operational model gives state actors several clear advantages: it lowers the risk of being blamed, allows them to exert pressure without crossing the threshold into open conflict and provides a deniable way to destabilize their rivals.
For counterterrorism agencies, however, it creates a serious security problem. Distinguishing a state-directed operation from everyday criminal activity becomes far more difficult. As states get better at hiding their hand, the threat environment grows more opaque, harder to read and far more challenging to deter.
Perhaps the most consequential shift in the 2026 terrorism landscape will be the degradation of global intelligence-sharing. Even as predictive analytics and surveillance technologies grow more sophisticated, the geopolitical foundation that once supported multilateral counterterrorism cooperation is weakening. The networks that took shape in the early 2000s, when major powers shared information more willingly and treated terrorism as a common priority, are now strained by competing national agendas, rising mistrust and shifting strategic focus.
As the U.S. redirects strategic focus toward great-power competition with China, traditional counterterrorism partnerships have weakened. Long-standing alliances such as the Five Eyes are increasingly strained by data localization laws, cyber-sovereignty movements and divergent national security priorities. Once-seamless intelligence flows now confront bureaucratic friction and growing mistrust.
Despite assurances that the U.S. can manage both great-power competition and the continued threat from non-state actors, counterterrorism resources remain limited. As strategic attention pivots toward cyber conflict, espionage and long-term rivalry with major states, the capacity dedicated to tracking terrorist activity inevitably thins.
This fragmentation of intelligence, combined with the rise of localized insurgencies and a broader mix of ideological extremists, creates wider gaps for smaller and more decentralized plots to hide within. In 2026, the world will be operating in a risk environment where attacks that once might have been disrupted early, may now go unnoticed until the moment they unfold.
Lastly, as legacy intelligence networks falter, new tools are stepping in to fill the gap. Tools once limited to state agencies, like satellite imagery, social-media forensics, predictive artificial intelligence and blockchain tracking, are now widely used by journalists, researchers and analysts to monitor terrorist activity and attribute attacks in near real time.
This democratization of intelligence offers a more decentralized and adaptive way to track terrorist activity. It challenges the state monopoly on threat detection and opens new channels for timely, cross-border insights.
For those in security, intelligence and risk management, the implications are mixed. On the upside, these tools provide frequent, detailed data that can enhance scenario planning and exposure monitoring, especially in places where formal access is limited. But they also come with risks: misinformation, inconsistent analysis and digital noise can distort threat perception and complicate decision making.
While these intelligence tools are gaining traction, their long-term impact on terrorism risk remains uncertain. Their value will depend on how effectively they are integrated, verified and applied within disciplined risk frameworks.
The terrorism landscape in 2026 will be shaped by fragmented operational structures, a broader mix of ideological actors and a weakening global intelligence system. While large, coordinated attacks have declined, the rise of localized insurgencies, politically driven violence and loosely connected networks has created a persistent and more elusive threat environment. Future attacks are likely to target crowded public places, using methods such as small arms assaults or commercial drones. Though less dramatic than past events, these incidents can still cause high casualties, deepen societal divisions and lead to large financial losses.
For the insurance industry, the implications are significant. As violent groups embed themselves in local conflicts, regional instability raises the risk of simultaneous attacks. Beyond physical damage, the potential for business interruption and supply chain disruption also remains high.
This evolving terrorism risk environment calls for a rethink of how exposure is measured, and resilience is built. As traditional intelligence networks come under strain, emerging sources like open-source data and AI can add valuable insights. However, these tools must be used with care, supported by strong validation and coordination. Thus, in this new era, anticipating terrorism risk means looking beyond conventional frameworks and embracing faster, smarter and more flexible forms of insight.
For further information on risk management and insurance solutions related to these risks, please contact our team.
In this video, we examine how a softening market is helping organizations expand their terrorism and political violence coverage.
