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.
Global military spending reached a record $2.9 trillion in 2025, according to the Stockholm International Peace Research Institute (SIPRI). Willis said it could approach US$4.7 trillion to US$6.6 trillion by 2035.
Willis warned that money does not automatically translate into capability. Contractors face cyber, supply chain, regulatory, contracting and operational risks that can delay or derail delivery, often with limited insurance capacity. Drones, autonomous systems and AI-enabled technology are also reshaping the sector, with exposures that traditional risk management was not built for.
The launch comes as New Zealand sharply increases defence investment after years of low spending. The government’s Defence Capability Plan, released in April 2025, committed NZ$12 billion over four years, including NZ$9 billion of new spending. It aims to lift defence spending from just over 1% of GDP to more than 2% within eight years.
The plan includes new maritime helicopters, enhanced strike capability and exploration of uncrewed vehicles and space technology. It also commits to closer integration with Australia, including buying the same equipment where it makes sense.
In October 2025, the government followed with a Defence Industrial Strategy designed to grow New Zealand’s defence industry. New procurement rules require larger defence primes to work more closely with smaller New Zealand firms, and contractors must show how their tenders will deliver economic benefits to New Zealand, including by using local businesses.
For New Zealand commercial brokers, the new procurement rules are the key change. If primes must use local suppliers, more New Zealand manufacturers, engineering firms and technology companies will enter defence supply chains, often for the first time.
Those businesses will face contractual insurance requirements set by primes and the Ministry of Defence, including higher liability limits, cyber and security standards, and exposures linked to drones and autonomous systems. Products liability, professional indemnity, cyber and marine cover are all likely to see more demand.
With New Zealand’s defence industry small but growing, brokers who understand defence contract requirements will be well placed to support clients entering the sector. Those who don’t may lose them to global brokers with dedicated defence teams.
