The China Reinsurance (Group) Corporation (China Re Group) has carried out a preliminary comprehensive assessment of the impact of the US-Israeli-Iran hostilities on its operations. The Group finds that the current impact of the war on it is generally manageable, but uncertainties remain due to ongoing developments.
China Re Property & Casualty Insurance (China Re P&C), a subsidiary of China Re Group, has no risk exposure in Iran, and its overall direct risk exposure in the Middle East is relatively low, which will not have a substantial impact on the group's overall claims payout in the short term, the company’s General Manager, Mr Huang Zhongyao, said.
Speaking to the media at a briefing on China Re Group’s financial results for 2025, he said that following the outbreak of the conflict on 28 February, all overseas business platforms immediately implemented necessary underwriting control measures. They continue to be prepared to adjust their underwriting strategies as the situation develops.
Impact on different insurance branches
Mr Huang said that China Re P&C also analysed the situation across different business lines. Regarding property insurance, engineering insurance, and upstream energy insurance, the original policy terms already included war exclusion clauses, excluding losses directly or indirectly caused by war, invasion, or similar paramilitary actions. These businesses have been segregated from the risk and remain largely unaffected.
In marine insurance, although the probability of ships being sunk, is currently low, attention needs to be given to the transportation of cargo, such as oil, that is underwritten domestically, as well as shipping risks associated with vessels flagged outside mainland China, Hong Kong and Macau.
Mr Huang, referring to marine war risk insurance, said that the international market has already designated the Persian Gulf region as a high-risk area. Coverage, if not withdrawn, is provided at significantly increased premium rates, requiring a reassessment of risk and repricing.
From the perspectives of political violence and terrorism risk, close attention should be paid to potential spillover effects of the conflict. At present, some civilian infrastructure in the Middle East has already sustained damage, indicating potential risk exposure, he added.
Regarding export trade credit insurance, although no related claims have been reported so far, there may be certain risks arising from medium- to long-term impacts on global supply chains, which warrant ongoing close monitoring.
Mr Huang added that if the conflict escalates or becomes prolonged, leading to sharp increases in international prices of crude oil, fertilisers, and other commodities, it could drive up inflation and indirectly affect trends in the global insurance and reinsurance markets.
China Re P&C will continue to track developments in the conflict and potential losses, and respond dynamically to risks. At the same time, the company will leverage the Belt and Road Initiative to keep pace with the protection needs of Chinese enterprises overseas and to fulfill its role as the national reinsurance provider, he said.