Middle East conflict to drive cyber insurance demand, says GlobalData

Rising conflict risk linked to the US, Israel, and Iran is pushing insurers and insureds to reassess exposure not only across marine and trade routes, but also across digital threat vectors. More than a quarter of insurance industry professionals believe cyber insurance will see the strongest increase in demand as geopolitical tensions escalate, according to a poll* conducted by GlobalData, a leading intelligence and productivity platform.

GlobalData’s Q3 2025 poll reveals that 27.4% of respondents see cyber insurance as the commercial line most likely to experience increased demand due to geopolitical instability. The poll results indicate that cyber insurance is now viewed as a more immediate pressure point than several traditional geopolitical covers. Cyber insurance ranked ahead of political risk insurance (25%), supply chain insurance (23.8%), and business interruption insurance (13.1%), suggesting that industry participants increasingly expect geopolitical shocks to translate into heightened digital security incidents.

Charlie Hutcherson, Insurance Analyst at GlobalData, comments: “Geopolitical flashpoints are increasingly being priced not just through marine war-risk and political risk lines, but through expectations of cyber escalation. GlobalData’s poll shows cyber insurance is viewed as the commercial product most likely to see rising demand, as businesses anticipate a higher probability of disruptive cyber events alongside physical disruption to trade routes.”

Recent developments in the Middle East further illustrate how geopolitical conflict can affect insurance markets across multiple lines. Reports indicate that several maritime insurers have suspended war-risk coverage for vessels entering the Persian Gulf and surrounding waters, while premiums for ships transiting the Strait of Hormuz have risen as underwriters reassess the threat environment around one of the world’s most strategically important energy corridors.

Separately, the US Development Finance Corporation has signaled readiness to extend political risk insurance and guarantees for maritime trade, while the US has indicated that naval escorts may be deployed to protect tanker traffic.

Hutcherson concludes: “While underwriters are already reassessing exposures tied to shipping and energy corridors such as the Strait of Hormuz, the bigger shift is that companies are planning for conflict spillover into Western markets through cyber activity. As a result, insurers will face additional pressure to refine cyber risk appetite, pricing, and accumulation management if they want to meet customer needs and retain business in an increasingly volatile environment.”