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Global instability drives demand for supply chain insurance
['Dc Velocity Staff', 'Human Content']
DC Velocity
Supply chain insurance is increasingly seen as “must-have” protection amid global instability, but some insurance companies are wary of covering such unpredictable threats, according to analysis from GlobalData, a London-based research and data provider.
Meanwhile, the U.S. shift toward economic nationalism—marked by sudden tariff hikes, export restrictions, and sanctions—is pressuring international trade supply networks, GlobalData said.
Pressed by those conditions, businesses overwhelmingly view the fallout of geopolitical tensions through the lens of indirect operational disruption, seeking products that safeguard their daily commercial operations.
To gain that safety, research shows that supply chain insurance (41.1%) is the product expected to see the highest demand due to geopolitical tensions, coming in far ahead of cyber insurance (20.6%), business interruption insurance (15.0%), marine insurance (14.0%), and political risk insurance (9.3%).
“Only insurers with the most risk appetite are willing to adapt their underwriting strategies and product offerings.