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AM Best has suggested that losses to the global reinsurance market from the ongoing conflict in the Middle East are limited so far and would typically take the form of single large losses. Source: Reinsurance News
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Global marine insurance companies’ concerns are increasing about the rising risks of piracy and ship seizures in the Arabian Gulf and the Strait of Hormuz, amidst the accelerating military escalation and the transformation of some vital shipping routes into high-security tension areas. This has prompted insurance institutions to reassess risk levels and take quick measures…
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Data centers, energy projects, pipelines, ports, and hotels across the Gulf are flooding insurance companies with requests for coverage worth millions of dollars against “political violence,” as asset owners seek to limit their exposure to the risks of the escalating regional conflict. Source: الخليج
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The closure of the Strait of Hormuz does not necessarily require military fleets or naval mines. In the world of modern trade, a closure can occur in a much quieter manner: through the marine insurance markets. Source: Al Morakeb Group
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Tensions in the region and the increasing risks to maritime navigation, as well as air travel risks, have raised questions regarding the insurance sector’s readiness to handle the repercussions of current events—whether at the level of property insurance or marine insurance. Source: Al Morakeb Group
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As tensions in the Gulf raise concerns about shipping disruptions, airspace closures and higher business costs, many UAE residents are asking a practical question: could the conflict eventually affect insurance prices. Regional instability can influence financial markets, trade routes and economic activity across the Gulf. Source: Gulf News
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Marsh, which helped establish an international insurance facility for Ukrainian trade in 2023, said it welcomes the recent guidance issued by the U.S. International Development Finance Corporation to provide insurance against political risks and financial guarantees for maritime trade in the Gulf. Source: Al Arabia
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Ahmed Jahrami, General Manager and Head of Commercial Insurance in Bahrain, said that insurance coverage related to war risks is still currently available in the market, but it is subject to special conditions. Source: Al Morakeb
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The situation across Middle East shipping lanes has escalated sharply, with substantial operational, navigational, and insurance implications for global trade as a result of the military conflict in the region that began on 28 February. Source: Middle East Insurance Review
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War risk insurance for vessels transiting the Persian Gulf and Red Sea remains available, although insurers are reassessing their appetite for exposure as tensions in the Middle East disrupt shipping routes and threaten supply chains, according to the International Union of Marine Insurance. Source: Reinsurance News
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