Supply chain insurance demand rises amid geopolitical instability

Global instability and interconnectedness are driving a surge in demand for supply chain insurance and enhanced threat intelligence. According to analysis from GlobalData, businesses increasingly view geopolitical tensions—including conflicts in the Middle East and Eastern Europe and shifts toward economic nationalism in the U.S.—as primary drivers of operational disruption.

Research indicates that 41.1% of industry insiders expect supply chain insurance to see the highest demand due to these tensions, significantly outpacing cyber or marine insurance. However, insurers are reportedly struggling to adapt, with some reducing coverage due to the difficulty of quantifying unpredictable risks like sudden tariff hikes, sanctions, and trade route blockages.

Beyond insurance, the modern security landscape requires organizations to look past internal controls to manage third-party risks. Vulnerabilities often emerge through vendors, logistics providers, and contractors. These risks extend beyond cybersecurity to include logistics, facility access, and executive exposure, where sensitive information regarding routing, schedules, or asset locations can be compromised through external partners.