Kathmandu. Rising tensions in the Middle East are already affecting the insurance market. The demand for cyber insurance is expected to increase the most as geopolitical risks are increasing. <\/p>\n
A survey conducted by GlobalData plc in the third quarter of 2025 showed that 27.4 percent of insurance professionals expect the biggest increase in demand for cyber coverage if geopolitical volatility worsens. It puts cyber insurance ahead of political risk coverage by 25 per cent, supply chain insurance by 23.8 per cent and business interruption insurance by 13.1 per cent. <\/p>\n
GlobalData Insurance Analyst Charlie Hutcherson says geopolitical conflicts are increasingly shaping how companies predict cyber threats, especially in the digital world. “Geopolitical flashpoints are predicted not only by maritime warfare risk and political risk lines, but also by projections of cyber escalation,” Hutcherson said. <\/p>\n
Businesses are becoming increasingly worried. This is because cyberattacks can occur along with physical disruptions in global trade. Government-backed hacking campaigns, attacks on critical infrastructure, and digital espionage are often linked to geopolitical conflicts. As a result, cybersecurity is an increasing priority for companies operating across borders. <\/p>\n
Similarly, the war between the US, Israel and Iran is already affecting the maritime insurance market, especially along the Strait of Hormuz. This strategic waterway carries about one-fifth of the world’s marine oil and gas shipments, according to S&P Global Market Intelligence LLC. <\/p>\n
Ships planning to transit the Strait are finding it difficult to obtain hull war risk insurance as the fighting escalates. The United States and Israel launched air strikes against Iran on February 28. This was followed by retaliatory missile and drone strikes targeting military assets and energy infrastructure in the Persian Gulf. <\/p>\n
David Smith, head of marine at insurance broker McGill & Partners, said insurance companies have been wary of covering ships planning to transit the Strait. “If your tanker is going through the Strait of Hormuz, it may be difficult for you to find an insurance underwriter,” Smith said. <\/p>\n
Iran has threatened to close Hormuz and target ships trying to pass through it. Some ships have been directly attacked. According to some analysts, insurance restrictions are only reducing transportation traffic. <\/p>\n
From the point of view of insurance, the Hormuz route is closed. That’s because many insurance companies have suspended coverage for vessels entering this waterway. <\/p>\n
War risk premiums have risen sharply for ships entering the Persian Gulf without crossing Hormuz. Hull battle cover can now cost up to 1% of the ship’s price for 7 days of protection. That was about 0.25 percent before the war. <\/p>\n
Marine insurance companies are reviewing their exposure to specific shipping lanes and energy corridors. But they must also be prepared for cyber threats linked to geopolitical tensions. That could affect companies far away from the sector. <\/p>\n
As geopolitical strife increasingly blurs the line between physical and digital threats, insurers may need to rethink how they price cyber policies, how much risk they are willing to take, and how to manage the concentration of exposure. \u2013Agency<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. Rising tensions in the Middle East are already affecting the insurance market. The demand for cyber insurance is expected to increase the most as geopolitical risks are increasing. A survey conducted by GlobalData plc in the third quarter of 2025 showed that 27.4 percent of insurance professionals expect the biggest increase in demand for […]<\/p>\n","protected":false},"author":16,"featured_media":65831,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45044,45159],"tags":[],"class_list":["post-291226","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/291226","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=291226"}],"version-history":[{"count":1,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/291226\/revisions"}],"predecessor-version":[{"id":291227,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/291226\/revisions\/291227"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/65831"}],"wp:attachment":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=291226"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=291226"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=291226"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}