Kathmandu. Geopolitical tensions are disrupting major trade routes and daily operations. As a result, businesses are investing more in supply chain insurance.
This is according to a survey of Verdict media sites conducted by GlobalData in the second quarter of 2026. During the survey, 41.1 per cent of respondents said they expect supply chain coverage related to geopolitical risks to increase the most. Among the respondents, 20.6 percent said that the demand for cyber insurance will also increase.
The survey received 107 responses from participants from the insurance industry. According to the survey report, companies are increasingly focusing on indirect barriers rather than limiting security to physical assets. Blocked trade routes, cyberattacks and loss of revenue spread to large operations are now among the top concerns.
According to Beatriz Benito, chief insurance analyst at GlobalData, companies are particularly focused on keeping their businesses running. “Because geopolitical risks are becoming harder to manage,” he said, adding that conflicts in the Middle East and Eastern Europe have increased pressure on international shipments through the Suez Canal and the Strait of Hormuz. Many companies have already begun to reroute cargo and explore other maritime corridors.
Trade networks are also under pressure from changes in US policy (tariffs and export restrictions). Insurance companies themselves are also struggling to adapt to the changing risk landscape. As demand for coverage grows, some carriers are reducing capacity or rolling back production. Because they are finding it difficult to assess geopolitical risks.
Benito suggested that those seeking to stay in the market need to tighten up stress testing products against the possibility of policy positions, exemptions related to tariffs and sanctions, as well as the potential for major damage from a single incident. Real-time geospatial tracking is also increasingly used to assess risk and assist in underwriting decisions. –Agency
