Marine, aviation, cyber, and terrorism insurers face immediate underwriting pressures and potential accumulation losses as a result of heightened hostilities between Iran and Israel, according to Morningstar DBRS.
In addition, the report said, reinsurance capacity in certain business lines could tighten in a prolonged Iran-Israel conflict, increasing capital charges for primary carriers.
“The Iran-Israel conflict represents a multifaceted challenge for the global insurance industry, touching nearly every property and casualty (P&C) business line and asset class,” said the credit agency in its report, titled Middle East Tensions Add Underwriting and Investment Risks for Global Insurers and Reinsurers.
“While higher premiums in marine and aviation may offer some short-term underwriting relief, the accumulation of risk exposures across war, c…