Kathmandu. The stress of war has increased the demand for political risk insurance in the Middle East region. The conflict between the United States and Iran has led to a surge in demand for political risk insurance in the Middle East. <\/p>\n
The conflict is affecting specific sectors such as hospitality, energy and infrastructure. Assets, such as hotels, data centers and pipelines, are considered vulnerable to missile attacks and drone incidents. Geopolitical tensions since the start of the Russia-Ukraine war have already boosted demand for cyber insurance, but GlobalData survey data shows that interest in political risk coverage is growing at a similar pace. <\/p>\n
A survey conducted on Verdict media sites in the third and fourth quarters of 2025 found that while most insurance professionals expect demand for cyber insurance to be high, nearly one in four respondents believe there will also be a significant increase in political risk insurance. <\/p>\n
Disruptions in key shipping routes are expected to boost demand for supply chain insurance. Recent events have highlighted the risks. Parts of the Middle East have been hit by missile attacks. The Fairmont Hotel in Dubai was damaged. <\/p>\n
The area between Israel and Iran is particularly vulnerable to missile activity and debris from intercepted drones. <\/p>\n
“Political risk is becoming increasingly important for businesses operating near conflict zones,” said Ben Carey-Evans, senior insurance analyst at GlobalData. That’s because standard policies often don’t cover war damage. \u2019<\/p>\n
This means that damage from a military strike may not be covered by traditional property or trade interruption insurance, and claims may be subject to legal litigation. “Countries like the United Arab Emirates (UAE) and Qatar are at high risk of damage from intercepted missiles or unintentional attacks,” Evans said. This increases the need for specialized coverage. \u2019<\/p>\n
Major tourist hubs such as Dubai and Abu Dhabi are facing increasing risks from the ongoing fighting. This can cause costly damage to high-value assets. This further increases the demand for political risk insurance. <\/p>\n
According to GlobalData, insurance companies offering political risk, cyber and supply chain coverage are expected to see increased demand through 2026. However, the firm said, “These risks will be difficult to underwrite and insurers will need to price policies and assess their risks as geopolitical uncertainty persists.” \u2019<\/p>\n
The results are based on a GlobalData survey of 84 respondents on the Verdict Media platform in the third and fourth quarters of 2025. \u2013Agency<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. The stress of war has increased the demand for political risk insurance in the Middle East region. The conflict between the United States and Iran has led to a surge in demand for political risk insurance in the Middle East. The conflict is affecting specific sectors such as hospitality, energy and infrastructure. Assets, such […]<\/p>\n","protected":false},"author":16,"featured_media":289735,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45044,45159],"tags":[],"class_list":["post-293049","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/293049","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=293049"}],"version-history":[{"count":1,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/293049\/revisions"}],"predecessor-version":[{"id":293050,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/293049\/revisions\/293050"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/289735"}],"wp:attachment":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=293049"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=293049"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=293049"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}