Kathmandu. Due to the increase in cyber threats due to geopolitical tensions, cyber insurance has become the most sought-after coverage in the world.
According to GlobalData, the latest survey by data and analytics firm conducted on Verdict media sites for cyber insurance in the third quarter of 2025 found that 27.4 percent of respondents believe that the demand for cyber insurance will increase the most. This is followed by political risk insurance at 25%, supply chain insurance at 23.8% and trade interruption insurance at 13.1%. The findings indicate that digital security risks have now surpassed traditional political and operational risks.
Charlie Hutcherson, insurance analyst at GlobalData, said that ongoing conflicts, including the Russia-Ukraine war, have increased coordinated cyber campaigns targeting infrastructure and corporate networks. “Rising tensions in the Middle East have also led to an increase in state-sponsored and hybrid cyberattacks, which are expanding beyond regional conflicts,” he said, adding that organizations are acknowledging that cyber incidents are increasingly driven by geopolitical tensions and nation-state actors rather than isolated criminal groups. ’
According to Charlie, threats can disrupt supply chains, undermine operational resilience and damage reputations. “This exposes weaknesses in traditional insurance offerings,” he said, adding that cyber insurance is becoming an essential tool for risk transfer. ’
According to Charlie, insurance companies are facing a growing demand for cyber products. “They’re clearer in coverage from real-time threat monitoring to faster recovery after a breach and are more proactive in promoting resiliency,” Charlie said.
According to a report by GlobalData, with budgets cut in many areas, shoppers will be looking for policies that offer solid value both before and after the event. “Insurers working closely with governments and cybersecurity experts, focusing on preventive measures such as risk assessment and employee training, would be in a better position to grow their cyber portfolios,” the report said.
