THE CHALLENGES OF SELLING WAR AND TERRORISM INSURANCE

War and terrorism risks have become critical economic threats in Nigeria, manifesting in different forms, manifesting as Boko Haram insurgency to banditry and kidnaping. Traditionally considered uninsurable due to their catastrophic and strategic nature, these risks were historically excluded from standard insurance policies in Nigeria. Since 2013, the National Insurance Commission directed insurers directed insurers to develop terrorism endorsements which was never effected. The broad objective of this study was to critically examine the operational, regulatory and market dynamics of war and terrorism insurance in Nigeria, with a view to identifying systemic challenges and evaluating viable prospects for sustainable market development. The study adopted a qualitative, conceptual and doctrinal research design anchored on systematic literature review. Secondary data was collected from 52 documents including peer-review journals, NAICOM guidelines, NIMASA reports, LMA clauses, Pool Re, OECD reports and credible industry publications (2012-2025).Data were analysed using thematic content analysis and doctrinal analysis, structured around the conceptual framework of risk factors, market/ underwriting factors, and institutional/regulatory factors. The study found that Nigeria lacks a standalone terrorism insurance statute, relying on exclusions clauses and permissive NAICOM circulars, the market has evolved from total exclusion to regulatory awakening to current capacity crisis, that war risk insurance acts as a discriminatory non-tariff trade barrier for imports into the country, that systematic challenges inhibit growth: limited underwriting capacity, lack of actuarial data and catastrophe model. The study concluded that war and terrorism risk in Nigeria was not uninsurable but would need state intervention to be insurable. It recommends the establishment of Nigerian Terrorism Insurance Pool (NTIP) with Federal Government unlimited guarantee beyond industry retention, creation of war risk premium delisting technical committee by NIMASA for data-driven advocacy to LMA, development of centralised terrorism loss database by NIA and NAICOM, and premium subsidies and awareness campaigns for SMEs.