Why is cyber insurance the most in-demand coverage today?

27.4% believe cyber insurance will see the highest increase.

Cyber insurance has become the most in-demand coverage as geopolitical tensions drive a surge in cyber threats, according to GlobalData.

The data and analytics firm’s latest poll, conducted across its Verdict Media sites in the third quarter of 2025, found that 27.4% of respondents believe cyber insurance will see the highest increase in demand. 

This was followed by political risk insurance at 25%, supply chain insurance at 23.8%, and business interruption insurance at 13.1%. 

The findings suggest that digital security risks are now surpassing traditional political and operational exposures.

Charlie Hutcherson, insurance analyst at GlobalData, said that ongoing conflicts, including the Russia-Ukraine war, have expanded into coordinated cyber operations targeting infrastructure and corporate networks. 

Rising tensions in the Middle East have also led to more state-sponsored and hybrid cyberattacks that extend beyond regional conflicts.

“Organisations are recognising that cyber incidents increasingly stem from geopolitical escalation and nation-state actors rather than isolated criminal groups,” Hutcherson said in the report.

He added that these threats can disrupt supply chains, weaken operational resilience, and damage reputations, exposing gaps in traditional insurance offerings. 

As a result, cyber insurance is becoming an essential tool for risk transfer.

“Insurers are facing growing demand for cyber products that are clearer in coverage and more active in supporting resilience, from real-time threat monitoring to faster post-breach recovery,” he said.

“With budgets tightening across many sectors, buyers will seek policies that deliver tangible value before and after an incident occurs,” he added.

He noted that insurers that work closely with governments and cybersecurity experts, and that focus on preventative measures such as vulnerability assessments and employee training, will be better positioned to grow their cyber portfolios.