12/01/2020
The Middle East crisis will cause insurance price raise.
The recent conflict between Iran and the US have made their mark in the insurance industry and will be felt in the months to come. “The recent tensions, however, will lead to insurers and reinsurers imposing draconian conditions in policies, significantly increasing the costs of specialist insurance and pulling out of underwriting certain lines of business», said Jonathan Moss, head of marine and trade at international law firm DWF. “Ships will have to navigate longer routes to avoid dangerous areas, Ships’ crew wages will rise owing to the heightened risks of attacks to Vessels in the Strait of Hormuz, adding costs to end consumers for commodities transported globally, hampering trade.” According to Mr. Moss, insurers and reinsurers will be greatly affected, particularly in lines such as hull, war, piracy, terrorism, cargo, and construction.
