🛡️ How the Israel–Iran–US Conflict Is Shaping the Global & Indian Insurance Landscape

Published by: Assuredesk – India’s Trusted Insurance Support Platform

⚠️ A Conflict That’s No Longer Local

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.

🌍 What's Happening in the Insurance World?

1. War Risk Premiums Have Skyrocketed

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.

2. Marine Insurance Capacity Is Shrinking

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.

3. Travel & Evacuation Covers Are Being Rewritten

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.

India’s Exposure

• ~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.

📈 Assuredesk Insights: What's Ahead?

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