Published by: Assuredesk – India’s Trusted Insurance Support Platform
In June 2025, what started as a tit-for-tat exchange between Israel and Iran turned into a full-blown international security crisis after the United States bombed Iran’s nuclear facilities in coordination with Israeli forces.
The immediate fallout is being felt across oil prices, trade routes, cyber security, and most crucially — the global insurance industry.
Cargo ships passing through the Strait of Hormuz now face insurance premium hikes of 60–100%, making Indian exports (like basmati rice, chemicals, and machinery) costlier and riskier to insure.
Global reinsurers are pulling back from conflict zones, leaving Indian insurers to either bear the full risk or increase policy exclusions for war, civil unrest, and political instability.
With India evacuating nationals from Iran under “Operation Sindhu,” travel insurers are redrafting clauses to exclude war zones and high-risk areas.
4. Cyber Risk Is Rising
Cyber-attacks linked to the conflict are increasing. Insurers are now charging more for cyber coverage, especially in sectors like BFSI, logistics, and healthcare.
~85% of India’s crude oil is imported, much of it via threatened routes.
Exporters are facing higher logistics and insurance costs.
Travel, aviation, and reinsurance segments are entering a volatile phase.
Indian insurers depending on global reinsurers are revisiting pricing and exclusions.
At Assuredesk, we predict a new wave of demand for:
Transparent marine insurance guidance
Travel cover comparisons with war exclusions clearly explained
SME-focused cyber-insurance advisory
Guidance on Political Risk Insurance for exporters and corporates