The current geopolitical tensions in the Middle East are being closely monitored by the insurance industry across the region, says the Association of Lebanese Insurance Companies (ACAL).
The size of Korea's exposure to marine insurance risk has been estimated at around KRW1.7tn ($1.14tn), according to data submitted by the Financial Supervisory Service (FSS) to a legislator, amidst concern arising from the closure of the Strait of Hormuz as a result of the Middle East war.
The short-term impact of the US-Israeli conflict with Iran on the credit quality of (re)insurers has been limited, according to AM Best. However, a prolonged conflict may have wider market implications.
The insurance landscape is caught in a state of flux because of the rapid escalation of the military conflict between Israel and the US on one side and Iran on the other, according to Mr Suresh Nair, Executive Director of Gargash Insurance, which is a Dubai-based insurance broker.
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.