Subsea infrastructure faces rising security risks amid geopolitical tensions – Gallagher Re

Damage to undersea cables threatens global energy, communications, and business operations

Subsea infrastructure faces rising security risks amid geopolitical tensions – Gallagher Re

Reinsurance

By Kenneth Araullo

Subsea infrastructure plays a central role in energy and communications networks, supporting global business operations and contributing to international energy security. Undersea cables are a critical part of the digital economy, enabling commerce, business activities, and communication worldwide.

However, with more than 100 incidents of damaged or severed submarine cables reported annually, the risk to this infrastructure is increasing, particularly as geopolitical tensions rise. Gallagher Re notes that damage caused by sabotage has become a growing concern in an increasingly volatile environment. 

NATO has taken steps to address these risks, announcing in January 2025 the deployment of warships, patrol aircraft, and naval drones in the Baltic Sea to protect critical infrastructure.

The initiative, known as "Baltic Sentry," includes measures to respond to suspicious maritime activity. This follows incidents in November when two subsea fiber-optic cables were severed in the Baltic Sea on consecutive days.

Gallagher Re highlights that these events reflect a broader trend of hybrid warfare, where critical infrastructure outside of traditional conflict zones is being targeted. 

Hybrid warfare includes cyberattacks, disinformation, espionage, and acts of sabotage. These tactics create challenges in determining attribution and liability, complicating risk assessments for insurers and insured entities.

The Royal Navy reported on Jan. 22 that it was tracking a Russian vessel suspected of mapping submarine cables in the English Channel, with the UK government announcing plans to strengthen its response, including the use of artificial intelligence to monitor underwater infrastructure. 

“The ability to disrupt critical energy infrastructure with fairly unsophisticated means is a very real concern,” says Ian Picton (pictured above), executive partner, energy retail worldwide, Gallagher.

He adds that while businesses implement mitigation strategies such as deploying guard vessels or using marine tracking technology, the challenge remains in identifying threats that operate under the cover of legitimate maritime activity. 

With submarine infrastructure at the core of global energy and communications systems, regulatory responses are emerging. The European Commission has implemented the Critical Entities Resilience Directive, which includes energy and digital infrastructure.

Gallagher Re points out that the once-overlooked nature of subsea infrastructure is changing, with governments prioritizing resilience against future threats. 

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