Supply chain insurance is increasingly seen as “must-have” protection amid global instability, but some insurance companies are wary of covering such unpredictable threats, according to analysis from GlobalData, a London-based research and data provider.
The rising demand comes as ongoing conflicts in the Middle East and Eastern Europe are creating specific trade bottlenecks such as those in the Suez Canal and Strait of Hormuz, leading to widespread shipping reroutes, while alternative maritime corridors are emerging. Meanwhile, the U.S. shift toward economic nationalism—marked by sudden tariff hikes, export restrictions, and sanctions—is pressuring international trade supply networks, GlobalData said.
Pressed by those conditions, businesses overwhelmingly view the fallout of geopolitical tensions through the lens of indirect operational disruption, seeking products that safeguard their daily commercial operations.
To gain that safety, research shows that supply chain insurance (41.1%) is the product expected to see the highest demand due to geopolitical tensions, coming in far ahead of cyber insurance (20.6%), business interruption insurance (15.0%), marine insurance (14.0%), and political risk insurance (9.3%). The data comes from a poll conducted by GlobalData on Verdict Media sites in Q2 2026, which garnered over 100 responses from industry insiders.
“Organizations are deeply concerned about business continuity amid the cascading risks linked to a highly volatile geopolitical landscape,” Beatriz Benito, Lead Insurance Analyst, GlobalData, said in a release. “In contrast, demand for specialist transport and direct asset protection is lower. This highlights that organizations are deeply concerned about trade route blockages, state-sponsored cyberattacks, and collateral revenue losses that can have a cascading effect on operations, threatening day-to-day business continuity.”
However, despite demand for more insurance, insurers are struggling to adapt to the rapidly changing risk landscape, reducing the amount of coverage they’re willing to extend due to a fear that the risks are unquantifiable, Benito said.
“Only insurers with the most risk appetite are willing to adapt their underwriting strategies and product offerings. This requires providers to tighten policy wordings and exclusions around tariffs and sanctions, as well as to stress-test products to avoid catastrophic losses from a single event,” she said.
