Despite Middle East tensions, tariffs remain top political risk concern, according to latest Willis Political Risk Survey

Rhea-AI Summary

Willis, a WTW (NASDAQ:WTW) business, released its ninth annual Political Risk Survey Report, showing tariffs remain a leading political risk for companies despite Middle East conflict. 61% of respondents find tariff impacts hardest to manage and report negative financial effects.

The survey highlights rising political and trade credit losses exceeding $250 million for the third year, growing interest in political risk and trade credit insurance, concerns over home-government policies, and preparations for a potentially bifurcated “Eastern” and “Western” global business structure.

AI-generated analysis. Not financial advice.

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LONDON, May 12, 2026 (GLOBE NEWSWIRE) -- Political risks driven by economic policy still outweigh those from international conflict, according to the ninth annual Political Risk Survey Report by Willis, a WTW business (NASDAQ: WTW).

Despite the survey being issued as the conflict in the Middle East broke out, respondents selected tariffs over international violent conflict as a top political risk, with 61% believing the impacts of rising tariffs are the most difficult to manage. 61% also reported that their company had experienced a negative financial impact from tariffs.

Other key findings include:

• Political risk and trade credit loss uptick: The share of respondents reporting credit and political risk insurable losses from geopolitical causes is the second highest in the nine years of the survey. For the third year running, related losses amounted to more than $250 million, and interest in political risk and trade credit insurance as a means of managing geopolitical risk has ticked up.
• Extreme responses: 39% of companies said they face higher risks because of the policy choices of their home government. 84% said they are either actively preparing for, or considering preparing for, a future in which “Eastern” and “Western” portions of the global business may need to be structurally independent.
• Gray-zone aggression: Economic coercion or retaliation, such as official or unofficial sanctions, threats or tariffs, or export embargoes for key commodities was ranked as the greatest gray-zone aggression related area of concern by 61% of firms, the second largest group of respondents. Attacks on infrastructure such as cutting undersea cables, destroying pipelines, disrupting power stations, arson in warehouses and other acts of this nature continue to be the top concern for 65% of respondents.
  

Sam Wilkin, Director of Political Risk Analytics at Willis said: “It’s surprising that while conflict in the Middle East dominates the headlines, the effects of tariffs continue to dominate business concerns. But this finding is in keeping with other trends portrayed by our survey sample. The political risk map of 2026 is not simply a map of war zones. It is a map of contested systems – trade systems, technology systems, information systems and domestic political systems. For globalised business, political risk is becoming less about exposure to a handful of unstable places, and more about exposure to an increasingly unstable world order. This report shines a light on what companies find hardest to manage in this geopolitical landscape that is changing so fundamentally.”

The complete report can be downloaded here.

The research includes a survey of 57 companies and in-depth, anonymised interviews with 15 participating companies. 

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.

Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at wtwco.com.

Media Contacts

Lauren David

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Jo Barrett

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FAQ

What are the key findings of the 2026 Willis Political Risk Survey from WTW (NASDAQ:WTW)?

The 2026 Willis Political Risk Survey finds tariffs are a leading political risk for companies. According to WTW, 61% of respondents say tariff impacts are hardest to manage, and political and trade credit losses topped $250 million for the third consecutive year.

How do tariffs impact companies in the 2026 WTW (WTW) political risk survey?

Tariffs are reported as a major challenge for businesses in 2026. According to WTW, 61% of companies say tariff impacts are hardest to manage, and an identical share report negative financial effects from tariffs on their operations and performance.

What does the Willis 2026 Political Risk Survey say about geopolitical loss levels?

The survey indicates elevated geopolitical-related loss levels for companies. According to WTW, political risk and trade credit insurable losses have exceeded $250 million for three consecutive years, marking the second-highest loss incidence in the survey’s nine-year history.

How are companies preparing for a split Eastern and Western business environment, according to WTW (WTW)?

Many companies are considering structural changes for a divided global market. According to WTW, 84% of respondents are either actively preparing for, or considering preparing for, a future where “Eastern” and “Western” portions of their global business may need structural separation.

What political risks linked to home-government policies did the 2026 WTW survey highlight?

Home-government policies are a significant source of perceived risk. According to WTW, 39% of surveyed companies say they face higher risks due to the policy choices of their home government, contributing to a more complex political risk landscape for global businesses.

What gray-zone aggression concerns did firms rank highest in WTW’s 2026 political risk report?

Infrastructure attacks and economic coercion stand out as major gray-zone concerns. According to WTW, 65% fear attacks on infrastructure like undersea cables and pipelines, while 61% cite economic coercion, including sanctions, tariffs, and export embargoes, as key worries.