Geopolitical Tensions Drive Demand for Supply Chain Insurance
Amid rising geopolitical instability, supply chain insurance has emerged as the most in-demand product among businesses seeking to protect their operations. A GlobalData poll of industry insiders revealed that 41.1% expect increased demand for this type of coverage due to cascading risks from conflicts and trade disruptions. The ongoing wars in the Middle East and Eastern Europe have caused bottlenecks at key shipping routes like the Suez Canal and Strait of Hormuz, forcing rerouted maritime traffic. At the same time, U.S.-led economic nationalism—through tariffs and sanctions—is further straining global supply chains. However, insurers are struggling to keep up with these rapidly evolving risks, leading many to withdraw products or tighten policy terms. Despite strong demand from businesses for protection against indirect operational disruptions like cyberattacks and trade route blockages, the insurance industry faces challenges in quantifying and underwriting such complex exposures.
Topics: cyber insurance geopolitical tensions risk management supply chain insurance