Indo-Pak tension: War risk premium in marine, aviation sector may inch up

Marine and aviation insurance premiums may rise if India-Pakistan tensions escalate, with reinsurers likely to revise exclusions and reassess cyber risk exposure

War risk premiums in marine and aviation sectors could rise, if the conflict between India and Pakistan post Operation Sindoor is prolonged, insurance experts believe.

 

Additionally, experts said that reinsurance premium rates in the aviation and marine segment might see an upward revision in the short term, if the tension between these two nations continue.

 

“While there is no immediate systemic impact, localised pricing hardening, revised exclusions, and portfolio de-risking from cautious reinsurers are likely if tensions persist or incidents escalate,” said Nymphea Batra, CEO, Guy Carpenter India. 

 

“The immediate impact in the reinsurance market with heightened geopolitical tensions or