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.
The Jordan Insurance Federation (JIF) has released a working paper titled "Implications of the War on Iran for the Jordan Insurance Sector", outlining the risks and challenges associated with the war in the Gulf, and proposed responses to them.
The exposure of Jeddah-headquartered Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) to regions affected by the ongoing war in the Middle East remains limited and is also mitigated through reinsurance, according to S&P Global Ratings (S&P).
The impact of the Iran-Israel-US war in the Middle East has yet to be felt by the Taiwanese life insurance sector.
Oil prices plunged below $100/bbl after the US and Iran agreed to a two-week ceasefire on 7 April, easing fears of prolonged supply disruption. Brent fell as much as 16% before trading around $94/bbl, according to ING Think, ING Global Markets Research.
Bahrain-based reinsurer Hannover ReTakaful's (HRT) war-related exposures are either highly reinsured or subject to war exclusions, and should therefore be manageable, even though it is too early to assess the potential impact of the conflict on HRT's business, says S&P Global Ratings (S&P).
The heads of the International Energy Agency, International Monetary Fund, and World Bank Group have agreed to form a coordination group to maximise their institutions' response to the energy and economic impacts of the war in the Middle East.
India may announce a dedicated reinsurance fund for ships may be announced soon to provide financial support to shipping companies struggling with rising operational costs amidst rising geopolitical tensions involving the US, Israel, and Iran.
New estimates by the United Nations Development Programme (UNDP) suggest the military escalation in the Middle East may cost economies in the region from 3.7 to 6.0 % of their collective Gross Domestic Product.
As tension escalates amidst the ongoing war in the Gulf, the General Arab Insurance Federation (GAIF) urges stakeholders to consider alternative solutions to strengthen the sector's capacity to deal with war risks.