Rising geopolitical tensions involving the US, Israel and Iran are driving demand for cyber insurance, with industry respondents ranking it ahead of political risk, supply chain and business interruption coverage, reports London’s Air Cargo Week.
A GlobalData poll showed 27.4 per cent of respondents expect cyber insurance to see the strongest increase in demand as instability escalates. Political risk insurance was cited by 25 per cent, supply chain insurance by 23.8 per cent and business interruption insurance by 13.1 per cent.
Insurance analyst Charlie Hutcherson said geopolitical flashpoints are increasingly priced not only through marine war-risk and political risk lines but also through expectations of cyber escalation. He noted businesses anticipate disruptive cyber events alongside physical disruption to trade routes.
Maritime insurers have suspended war-risk coverage for vessels entering the Persian Gulf, while premiums for ships transiting the Strait of Hormuz have risen. Underwriters are reassessing exposures around one of the world’s most critical energy corridors.
The US Development Finance Corporation has signalled readiness to extend political risk insurance and guarantees for maritime trade. Washington has also indicated naval escorts may be deployed to protect tanker traffic in the region.
Hutcherson said the bigger shift is that companies are planning for conflict spillover into Western markets through cyber activity. He warned insurers will face added pressure to refine cyber risk appetite, pricing and accumulation management to meet customer needs in a volatile environment.
