US, Israel, and Iran tensions drive cyber insurance demand, surpassing political risk and supply chain coverage, reports Air Cargo Week.
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 that 27.4 percent of respondents expect cyber insurance to see the strongest increase in demand as instability escalates. Political risk insurance was cited by 25 percent, supply chain insurance by 23.8 percent, and business interruption insurance by 13.1 percent.
Insurance analyst Charlie Hutcherson stated that geopolitical flashpoints are increasingly priced not only through marine war-risk and political risk lines but also through expectations of cyber escalation. He noted that businesses anticipate disruptive cyber events alongside physical disruptions 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 signaled its readiness to extend political risk insurance and guarantees for maritime trade. Washington has also indicated that naval escorts may be deployed to protect tanker traffic in the region.
Hutcherson emphasized that the bigger shift is that companies are planning for conflict spillover into Western markets through cyber activity. He warned that insurers will face added pressure to refine cyber risk appetite, pricing, and accumulation management to meet customer needs in a volatile environment.
