The Middle East conflict has fundamentally altered the calculus of risk for global shipping, energy, and trade-dependent industries, according to EDME Insurance Brokers Global CEO-Treaty Reinsurance, Mr Vinod Krishnan.
He told Middle East Insurance Review, “What we are witnessing is not a temporary disruption but a structural stress test for supply chains that were already fragile post-pandemic. For insurers and brokers, the question is no longer whether these risks will manifest, but how quickly they will be priced into the market.”
He added, “On premiums, clients should expect upward pressure across marine cargo, war risk, and trade credit lines in the near term. The Strait of Hormuz remains one of the world's most critical chokepoints, and any sustained escalation in the region translates directly into elevated underwriting caution. We are already seeing selective capacity withdrawal from certain high-risk corridors, and that trend is unlikely to reverse until there is meaningful de-escalation on the ground.
Mr Krishnan added, “The geopolitical environment cannot be controlled. What can be controlled is preparedness.”