Cargo insurers struggle with crisis feedback loop as geopolitical risks surge

As geopolitical risks multiply, cargo insurers face escalating volatility and pricing challenges, with flexible policies and rapid response times failing to prevent market instability

The cargo insurance industry finds itself caught in an accelerating feedback loop: by responding to rapidly escalating geopolitical risks with their strategy of compressed response times and hair-trigger policy cancellations, insurers may be contributing to the very market volatility they seek to understand and mitigate.