Kathmandu. The peace deal between the US and Iran, ending the 3-and-a-half-month-long conflict in the Middle East, is likely to have a major impact on insurance and reinsurance markets around the world.
Insurance industry experts believe the deal could lead to some short-term price corrections as trade and supply chain pressures ease and the transportation and aviation sectors return operations to normal.
The full extent of the war claims is still unknown. Therefore, once the terms of the peace agreement are fully implemented and the transportation channels are cleared for smooth travel, the insurance industry will have to adopt a wait-and-see policy.
Anil Sant, president and CEO of Asian Reinsurance Corporation, said the US-Iran peace deal will improve the risk profile of insurers in the region by reducing the risk of financial market volatility, energy prices, trade and supply chain disruptions and claims costs. “The peace agreement is a positive news. However, it has to be sustainable and it will take time for things to get back to normal,” he said. –Agency
