The report, "Insurance Brief: The Middle East War Has Limited Direct Impact on African Insurers, For Now", notes that rising energy prices, supply chain disruptions, and global market volatility could drive increases in claims costs, reinsurance expenses for certain business lines, and potentially reduce global demand for insurance products in the longer term, potentially affecting African insurers.
“If the conflict is short-lived, we anticipate a contained impact on African insurers, unless market volatility pressures insurers’ capital globally,” said S&P Global Ratings analyst Sylvia Mhlanga.
“African insurers have limited direct underwriting or asset exposure to the region; however, a prolonged conflict could indirectly affect growth, profitability, and capitalization across the African continent.”