Willis, the broking business of WTW, has launched a global defence and security initiative, bringing together specialists across regions and business lines to serve defence contractors, suppliers and security firms.
The initiative gives clients a single route into Willis’s risk transfer, risk advisory and analytics, cyber, crisis management, claims, risk engineering, operational resilience, workforce risk, and capital and transaction advisory services across 140 countries. It is led by Jennifer Caldarella, Willis’s global defence lead.
Caldarella said the defence and security sector was entering one of the most significant investment cycles in its history, but that investment alone does not create capability.
Willis said contractors face cyber, supply chain, regulatory, contracting and operational risks that can delay or derail delivery, often with limited insurance capacity.
Drones, autonomous maritime systems and AI-enabled technology are also reshaping the sector, bringing in technology-led companies with exposures that traditional risk management was not built for.
The launch comes as defence spending in Asia rises at its fastest pace in more than 15 years. Military expenditure in Asia and Oceania reached $681 billion in 2025, up 8.1% on 2024 and the largest annual rise since 2009, according to the Stockholm International Peace Research Institute (SIPRI).
Japan’s military spending rose 9.7% to $62.2 billion, equivalent to 1.4% of GDP, its highest share since 1958. Taiwan’s spending rose 14% to $18.2 billion, its largest annual increase since at least 1988. South Korea allocated $47.8 billion. SIPRI said US allies such as Australia, Japan and the Philippines were spending more because of long-running regional tensions, and growing uncertainty over US support.
Globally, military spending reached a record $2.9 trillion in 2025, according to SIPRI. Willis said it could approach US$4.7 trillion to US$6.6 trillion by 2035.
For brokers across Asia, the spending surge creates opportunity in markets with growing defence industries. Japan and South Korea are expanding domestic production and exports, drawing more manufacturers, electronics and technology firms into defence supply chains. Japan has also eased restrictions on arms exports.
Those businesses will face contractual insurance requirements, higher limits, security and cyber standards, and liability exposures linked to drones, autonomous systems and AI. Cross-border defence contracts add export credit, political risk and marine cover needs.
Defence work also brings complex regulatory and sanctions requirements that vary by market. Brokers advising manufacturing and technology clients entering the sector will need to understand those requirements, or risk losing clients to global brokers with dedicated defence teams.
