The direct impact of the conflict in the Middle East on Saudi Arabia's Gulf Union Alahlia Cooperative Insurance (Gulf Union) is expected to be limited, according to Fitch Ratings.
The Insurers' Federation of Egypt (IFE) has issued a set of recommendations to help insurers navigate geopolitical tensions and the war between the Iran-Israel-US war.
Airlines have adapted their operations through longer routings and revised scheduling since the Iran war began on 28 February. These moves have contributed to increased flight times, fuel consumption and overall operating costs.
Beazley, a leading specialty insurer, has announced its intention to launch a new marine war consortium, to provide up to $1bn of Lloyd's capacity, comprising $500m for Hull War and $500m for cargo war, that will be complementary to the existing capacity available in the market.
Shipowners and brokers need to take greater consideration of the scope of their war risk cover, and not just the price, as the number of war risk claims following incidents outside of traditional high-risk areas has risen, a senior underwriter at the London P&I Club has warned.
The announcement on 7 April of a two-week ceasefire between the US and Iran marks a critical moment of de-escalation of the intense geopolitical tension in recent weeks that brought the region to the brink of a wider conflict, according to Mr Hani Kurdi, Vice President - Marine at APEX.
While listed insurers in the United Arab Emirates (UAE) have delivered improved profitability, regional geopolitical tensions are affecting certain lines of business and investment portfolios, according to AM Best.
The escalating tensions in the Strait of Hormuz due to Israeli and US attacks on Iran indicate that the insurance sector has become one of the main actors in classifying the nature of conflict from an operational perspective.
Middle East Insurance Review (MEIR), in solidarity with the insurance market, has started a special series named "Middle East Conflict: The MEIR Dialogue" to discuss the insurance impact of the armed confrontation across MENA as well as globally. The series continues with an interview with Zurich Insurance Senior Executive Officer for Commercial Insurance Middle East Peter Englund.
Shipowners are reluctant to risk crossing the Hormuz Strait even with insurance because of the high cost of the assets, according to Mr Mohamed Mahran, the CEO of Misr Insurance Company, the biggest general insurer in Egypt.