Asia-Pacific leads political risk insurance growth

North America remains the largest market even as Asia-Pacific expands faster.

The Asia-Pacific political risk insurance market is expected to record the fastest growth globally through 2030, even as North America remains the largest market.

The global political risk insurance market is forecast to grow from $7.07b in 2025 to $7.67b in 2026, representing a compound annual growth rate (CAGR) of 8.6%, according to a report by The Business Research Company. 

It is expected to reach $10.77b by 2030, with a CAGR of 8.8% over the forecast period.

The report said historical growth was driven by rising foreign direct investment, increasing geopolitical instability in emerging markets, the expansion of multinational companies, continued currency volatility in developing economies, and the liberalisation of cross-border trade agreements.

In a report in March, the political risk insurance market was forecasted to see a sharp increase in demand amidst rising tensions involving the US, Israel and Iran are increasing risks across the Middle East, according to GlobalData.

The conflict is affecting key sectors including hospitality, energy and infrastructure, with assets such as hotels, data centres and pipelines seen as vulnerable to missile strikes and drone incidents. 

Whilst geopolitical tensions have already boosted demand for cyber insurance since the start of the Russia-Ukraine war, GlobalData’s survey data indicates that interest in political risk cover is rising at a similar pace. 

A poll conducted across Verdict Media sites in the third and fourth quarters of 2025 found that although most insurance professionals expect cyber insurance to see the highest demand, around one in four respondents believe political risk insurance will also see significant growth.