Global trade credit insurance company, Atradius, says that Qatar is the country among the six GCC states that is most exposed to the on-going military escalation in the Middle East.
CAT bonds are fundamentally largely insulated from geopolitical events such as current developments in the Middle East, according to Icosa Investments, a Swiss company engaged in alternative fixed income strategies, including catastrophe bonds.
While the Middle East war has heightened global geopolitical uncertainty, its direct implications for African insurers are likely to prove limited for now, S&P Global Ratings said in a report published yesterday.
The Arab War Risk Insurance Syndicate (AWRIS) has announced the reinstatement of Cargo War cover for shipments transiting high-risk maritime corridors, including the Strait of Hormuz, the Arab Sea, and Bab Al Mandeb.
The facultative reinsurance market is likely to be significantly affected by the ongoing Middle East armed conflict, according to Mr Gamal Sakr, Regional Director, Cairo Regional Office for Northeast Africa & Middle East - African Reinsurance Corporation (Africa Re).
Spillover credit risk from the Middle East war could increase sharply as hostilities persist, S&P Global Ratings said in a report.
The US International Development Finance Corporation (DFC) has announced that it would provide marine reinsurance in the Gulf region for losses of up to approximately $20bn on a rolling basis.
The Arab region has the experience to deal with war risks and geopolitical unrest, and is prepared to do so, said General Arab Insurance Federation (GAIF) Secretary General Chakib Abouzaid.
The insurance response to the blockage of the Strait of Hormuz in the ongoing hostilities in the Middle East has moved beyond incremental pricing, according to a brief by Dubai-based law firm Fichte & Co (Fichte).
The International Union of Marine Insurance (IUMI), whose members are national insurance and marine insurance associations, has said that the granting of war cover for the Persian Gulf and Red Sea is and will remain available under specific agreement on a single voyage basis as long as navigation is authorised by governments and flag states.