The Middle East conflict is anticipated to drive up demand for cyber insurance, according to recent reports. Insurance professionals from GlobalData indicate that cybersecurity may be increasingly at risk.
The commercial line of cyber coverage is expected to be the most affected by these developments. This concern arises amid escalating geopolitical tensions involving Israel, the United States, and Iran.
According to GlobalData’s Q3 2025 poll of insurance industry professionals, 27.4% of respondents believe that cyber insurance will see the strongest increase in demand. The reason for this is the escalating geopolitical tensions. So, which sectors need strong cybersecurity? The report highlights that about 25% will be to political risk insurance, 13.1% to business interruption insurance, and 23.8% to supply chain insurance.
The findings also suggest that many market participants believe that geopolitical shocks can impact digital systems and cause physical disruption. The cyber incidents are connected to state and non-state actors, sanctions, supply chain vulnerabilities, and operational technology. Apart from these, the cyber threats will also rise from traditional war, maritime war, and political risk exposures.
Looking ahead, Charlie Hutcherson, insurance analyst, GlobalData, said: “Geopolitical flashpoints are increasingly being priced not just through marine war-risk and political risk lines, but through expectations of cyber escalation.” He also explained that GlobalData’s poll indicates that cyber insurance, viewed as a commercial product, could see rising demand. This is due to businesses expecting an increased likelihood of disruptive cyber events, along with physical disruptions, across several US, Iran, and India trade routes.
Many market reports indicate that numerous maritime underwriters have suspended war-risk coverage for vessels operating in the Persian Gulf and surrounding waters. Furthermore, premiums for ships crossing the Strait of Hormuz have risen as shipping companies and cargo owners reevaluate their routes, accumulation risks, and potential losses. Additionally, public sector actions are also undergoing changes.
Also read: Cybersecurity & Digital Sovereignty: Protecting the UAE’s Digital Future