RESIL insights

In this episode, we explore how the escalating conflict involving the US, Israel, and Iran is sending a systemic shockwave through the global property and casualty insurance market. We break down the immediate, multi-line exposures straining the industry, from a 60% jump in marine war-risk premiums for ships transiting the Strait of Hormuz to the immense ground-risk vulnerabilities of grounded aviation fleets and the macroeconomic fallout of halted energy production. Furthermore, we dive into the mathematical ties between massive, correlated risk accumulations—such as potential $500 million insured losses from direct strikes on LNG tankers—and the resulting strain on reinsurance capital. Discover how tightening capacity and higher attachment points are forcing primary carriers to absorb higher loss retentions, which ultimately drives up premiums and leads to aggressive policy term modifications, including strict conflict zone exclusions and complex cyber warfare disputes, for insureds worldwide.