In today’s world, international disputes are no longer confined to the battlefield or diplomatic channels. With rising tensions, shifting alliances, and sanctions becoming common political tools, cyber risk has taken centre stage. Cyber insurance underwriters are increasingly faced with a critical challenge – not whether geopolitics will affect their portfolios, but how rapidly and significantly those impacts will manifest.
What used to be a background consideration is now a frontline factor in underwriting decisions, according to KYND. Sanctions, tariffs, and trade wars interact and amplify one another, turning geography into a crucial variable in assessing digital exposure.
Digital infrastructure under pressure
As businesses respond to geopolitical events — often by shifting data and services — new vulnerabilities emerge. Misconfigurations and weakened security controls are common byproducts of reactive changes.
For insurers, gaining detailed insight into where digital assets are hosted and operated is now essential to accurately price risk and avoid unexpected exposure.
Delving into a case study
In one notable case, KYND identified that a company was unknowingly operating websites in Iran — a sanctioned country.
Though hosted in the US and France, these sites used self-signed SSL certificates, opening the door to serious threats including man-in-the-middle attacks, spoofing, and compromised encryption. The case highlights how overlooked vulnerabilities can significantly increase cyber risk and expose insurers to regulatory complications.
Regulatory and operational fallout
Covering entities with operations in sanctioned regions like Iran can place insurers at odds with legal restrictions in the UK, US, and EU.
If a claim arises, international sanctions may even limit an insurer’s ability to pay or support the policyholder — introducing both compliance risk and reputational damage.
Wider intelligence needed
KYND’s analysis of high-risk regions revealed over 37,000 vulnerabilities, many tied to certificate and email exposures — common attack vectors.
Countries like India, Russia, Israel, and Ukraine were among those with high risk levels. The findings serve as a reminder that cyber risk and political geography are increasingly intertwined.
Read the full blog from KYND here.
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