Geopolitical Risks Drive Demand for Trade Disruption Insurance

News Desk: Businesses are expected to push harder for supply chain insurance as geopolitical tensions continue to disrupt trade routes and daily operations, according to a GlobalData survey.

In a poll conducted on Verdict Media sites during the second quarter of 2026, 41.1% of respondents said they expected supply chain cover to record the strongest rise in demand linked to geopolitical risks. Cyber insurance came second, named by 20.6% of those who took part. The survey drew 107 responses from industry participants.

GlobalData noted that companies are paying closer attention to indirect disruption rather than limiting protection to physical assets alone. Blocked trade routes, state-backed cyberattacks and revenue losses that spread through wider operations now rank among the chief worries.

Beatriz Benito, lead insurance analyst at GlobalData, said firms are especially focused on keeping business running as geopolitical risks grow harder to manage.

Conflicts in the Middle East and Eastern Europe have added strain to international shipping, including routes through the Suez Canal and the Strait of Hormuz. Many companies have already begun rerouting cargo and examining alternative maritime corridors.

Trade networks also face pressure from shifts in US policy that include tariffs, export restrictions and sanctions.

Insurers themselves are struggling to keep up with the shifting risk picture. While demand for cover is climbing, some carriers are cutting capacity or pulling products because they find certain geopolitical exposures difficult to price.

Benito suggested that those willing to stay in the market may need to tighten policy wording and exclusions related to tariffs and sanctions, while stress-testing products against the possibility of large losses from a single event.

Real-time geospatial tracking is also being used more widely to assess risks and support underwriting decisions.