Geopolitical tensions have seen demand for cyber grow sharply since the start of the Russia-Ukraine war, but our poll data suggests demand for political risk insurance is growing almost as quickly. Recent events have seen missiles hit places such as the Fairmont at the Palm hotel in Dubai, and it appears as though anywhere between Israel and Iran is under threat of missiles and shot down drones at present.
A GlobalData poll conducted across Verdict Media sites in Q3 2025 found that insurance insiders believed cyber insurance would see the highest demand due to geopolitical tensions. But one in four respondents believed that political risk insurance would. Supply chain insurance is also likely to be popular now with heavy restrictions in major shipping routes.
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Political risk insurance is so important to businesses near potentially dangerous zones, as most insurance policies have war exclusions. This means if a hotel, for example, is damaged by any kind of military strike, a traditional commercial property or business interruption policy may not pay out. Or there may be legal cases to dispute the terms of that particular contract.
The Financial Times reported in March that businesses across the Gulf are aggressively buying political risk insurance, which has caused premiums to spike. It cited data centres, hotels, and pipelines as examples of businesses that have increased demand for the product. Large tourist and business areas, such as Dubai, being caught in the middle of the conflict and facing accidental strikes and intercepted missiles means the risk of damage to many businesses is extremely high.
It is clear that insurers looking to sell political risk insurance (or cyber, or supply chain) will see a huge spike in business throughout 2026. However, they will be taking on a huge risk in doing so, so pricing the product and understanding the level of risk they are exposing themselves to will be critical.
