Less than 10% of UK insurance brokers viewed political instability as their top concern in 2025, but the recent conflict involving Iran, Israel, and the US—as well as the Strait of Hormuz crisis—is forcing a rethink. As war risk premiums surge, especially around key shipping routes, brokers may need to reassess their priorities to better align with growing global and client concerns, according to a new survey from GlobalData, a leading data and analytics company.

GlobalData’s 2025 UK Broker Insurance Survey* reveals that only 8.0% of brokers identified political instability as the greatest threat to their business, while just 0.8% cited global instability. Instead, brokers remain more focused on immediate commercial pressures such as competition from other brokers (13.2%) and direct insurers (11.2%).

However, this broker outlook contrasts sharply with consumer sentiment. According to GlobalData’s 2024 Emerging Trends Insurance Consumer Survey**, 43.3% of global consumers reported being “very concerned” about war and terrorism, with a further 37.5% “somewhat concerned.”

Charlie Hutcherson, Insurance Analyst at GlobalData, comments: “While geopolitical instability has not been a primary concern for brokers, the recent developments in the Middle East are prompting renewed scrutiny across key insurance lines, including marine, energy, aviation, and political risk.”

In June 2025, the London market’s Joint War Committee (JWC) met to assess risks linked to increased tensions around the Strait of Hormuz and Eastern Mediterranean shipping corridors. Although the committee did not update its list of high-risk areas, brokers reported sharp increases in war risk premiums—some rising by over 60% compared to the previous month.

Hutcherson concludes: “Brokers may be underestimating the strategic impact of geopolitical risks. The recent surge in war risk premiums is a clear signal that insurers are repositioning. With conflict dynamics evolving rapidly, especially around Iran, brokers will likely need to re-evaluate their client risk assessments and policy recommendations. If this crisis deepens, geopolitical threats could quickly rise to the top of the broker agenda.

“War risk cover, once a niche product, is re-emerging as a critical discussion point. As syndicates revise their models and reinsurers reassess exposures, brokers will need to keep pace to ensure clients are adequately protected. The market’s cautious response reflects a balancing act between preparedness and not overreacting—but that window for reaction may narrow quickly.”

*GlobalData’s annual UK Commercial Insurance Broker Survey, which explores broker behavior and business strategies in the UK. The survey is carried out annually within the first quarter of each year. Questions are asked via a telephone panel. Representative quotas for size and regional spread are used. The 2025 survey was carried out in January and February 2025 and reached 250 brokers. Prior to 2025, questions were asked via FWD’s Broking Now Omnibus telephone panel.

**GlobalData’s Emerging Trends Insurance Consumer Survey featuring a panel of consumers aged 18+, with 5,520 respondents spread across 11 countries in different regions to identify global trends. There was a minimum of 500 respondents per country. It is GlobalData’s first-ever dedicated multi-market insurance consumer survey.