Jakarta \u2014 Escalating conflict in the Middle East between the US and\nIsrael versus Iran is expected to increase not only global geopolitical\nuncertainty but also drive a rise in cross-border cyber attack\nrisks.<\/p>\n
This situation has the potential to trigger a surge in demand for\ncyber insurance across various countries, including Indonesia.<\/p>\n
A recent report from GlobalData indicates that modern geopolitical\nconflicts are increasingly accompanied by escalations in cyber\nactivities, ranging from cyber warfare and hacktivism to ransomware\nattacks targeting the business sector, financial institutions, and\ndigital infrastructure.<\/p>\n
In a GlobalData survey of commercial insurance industry\npractitioners, approximately 27.4% of respondents assessed that cyber\ninsurance would become the business line with the largest growth in\ndemand amid increasing global geopolitical tensions.<\/p>\n
Cyber insurance ranks at the top, ahead of political risk insurance\n(25%), supply chain insurance (23.8%), and business interruption\ninsurance (13.1%), indicating that industry practitioners increasingly\nanticipate that geopolitical shocks will impact a rise in digital\nsecurity incidents.<\/p>\n
According to GlobalData analysts, current geopolitical hotspots are\nno longer solely reflected in conventional warfare risks or political\nrisk insurance, but also in mounting threats to corporate digital\nsystems worldwide.<\/p>\n
Charlie Hutcherson, an insurance analyst at GlobalData, stated that\ngeopolitical flashpoints are increasingly valued not only through\nmaritime war risks and political risk but also through expectations of\ncyber escalation.<\/p>\n
\u201cThe GlobalData survey shows that cyber insurance is viewed as the\ncommercial product most likely to experience increased demand, as\nbusinesses anticipate a higher probability of disruptive cyber events\nalongside physical disruptions to trade routes,\u201d he said, quoted on\nTuesday (10\/3\/2026).<\/p>\n
Recent developments in the Middle East increasingly demonstrate how\ngeopolitical conflict can affect insurance markets across various lines.\nThe report indicates that some maritime insurance companies have\nsuspended war risk coverage for vessels entering the Persian Gulf and\nsurrounding waters, whilst premiums for ships transiting the Strait of\nHormuz have increased as underwriters reassess the threat environment\nsurrounding one of the world\u2019s most strategically important energy\ncorridors.<\/p>\n
Digital Risks Rise<\/p>\n
Current geopolitical conflicts increasingly spill over into digital\nspace. Cyber attacks can target corporate networks, payment systems, and\ndata centres supporting digital economic activity.<\/p>\n
For companies, the impact can include operational disruptions,\ncustomer data breaches, and financial losses from halted digital\nservices.<\/p>\n
According to developing reports, one form of support provided by\nChina and Russia to Iran in its conflict against the US and Israel is\nthrough cyber intelligence operations and geospatial operations\ntargeting adversary strategic assets.<\/p>\n
As a result, many global corporations have begun strengthening cyber\nrisk management strategies, including through the purchase of cyber\ninsurance policies to protect digital assets and ensure business\ncontinuity.<\/p>\n
Hutcherson concluded that whilst underwriters have already reassessed\nrisks related to shipping corridors and energy routes such as the Strait\nof Hormuz, the larger shift is that companies are planning for conflict\nimpacts spreading to Western markets through cyber activities.<\/p>\n
\u201cConsequently, insurance companies will face additional pressure to\nrefine their cyber risk appetite, pricing, and accumulation management\nif they wish to meet customer needs and retain business in an\nincreasingly volatile environment.\u201d<\/p>\n
The Cyber Insurance Market in Indonesia<\/p>\n
In Indonesia itself, the cyber insurance market remains relatively\nsmall, but its potential is viewed as very substantial alongside\naccelerating digital transformation.<\/p>\n
Several industry practitioners note that the proportion of cyber\ninsurance premiums in Indonesia remains at a very small range compared\nto total industry premiums, because the level of digital risk literacy\nand awareness amongst companies is still developing.<\/p>\n
Nevertheless, the trend of rising cyber attacks has made this product\nincreasingly attractive to sectors with high digital dependence, such as\nbanking, fintech, e-commerce, telecommunications, and technology\ncompanies.<\/p>\n
Some insurance companies have even begun developing specialised\nproducts to protect companies from various digital risks, ranging from\ndata breaches, ransomware attacks, to IT system operational\ndisruptions.<\/p>\n
On the other hand, authorities and industry have also begun\nstrengthening cyber resilience in the financial sector through\ncollaboration with national digital security institutions to map the\ncyber risk profile in the insurance industry.<\/p>\n
As Indonesia\u2019s economic digitalisation expands further, the need for\ncyber risk protection has the potential to continue increasing,\nparticularly if global geopolitical tensions trigger escalation in\ncross-border digital attacks.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/escalating-us-israel-iran-conflict-drives-demand-for-cyber-insurance-1773129314", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }