WTW Highlights Rising Risks in Maritime and Aerospace Sectors

WTW Highlights Rising risks in maritime and aerospace Sectors

December 11, 2024 – Global advisory and solutions company wtw (NASDAQ: WTW) has released its latest Political Risk Index, spotlighting the growing threats to the maritime and aerospace industries. The report identifies a surge in "gray zone aggression," a term for activities designed to weaken nations without direct warfare. These actions include attacks on vessels, undersea cables, and offshore installations, with advanced weapons and violations of international laws by states such as Russia and Iran being key contributors.

The index draws on insights from WTW’s marine, aerospace, and crisis management teams, revealing how these sectors are increasingly vulnerable to geopolitical disruptions. WTW’s annual survey earlier this year found that nearly 70% of respondents experienced supply chain issues in 2024 due to gray zone activities, including cyberattacks and sabotage in global shipping.

The report highlights the risks posed by Russia’s expanded shadow fleet, which lacks proper insurance and maintenance while often falsifying tracking signals. Such actions threaten maritime safety and disrupt shipping networks worldwide. Meanwhile, the aerospace sector faces a growing number of incidents, such as GPS jamming and spoofing, raising concerns about aviation security.

Samuel Wilkin, WTW’s Director of Political Risk Analytics, stressed the urgency of addressing these risks. “Without insurance, many ships won’t sail, and planes won’t fly. Understanding gray zone risks is vital to protect global trade and infrastructure. Hybrid warfare, fueled by new technologies like drones and cyberattacks, is likely to evolve, making risk assessment more critical than ever.”

As gray zone activities continue to escalate, WTW’s findings call for greater awareness and proactive measures to safeguard critical global sectors. The report underscores the need for coordinated efforts from governments, businesses, and insurers to counter these emerging threats.

Source: WTW