Kathmandu. Asian insurance companies and the global insurance industry are facing supply disruptions and disruptions to the free flow of goods due to the Middle East conflict. According to the latest Sigma report ‘World Insurance in 2026: Shock Absorbers in a Fractured World’, the global reinsurer Swiss Rico has said.
The conflict in the Middle East is the fourth blow in the last 6 years, according to Swiss Ree. “Despite the resumption of trade through the Strait of Hormuz, which supplies about a fifth of the world’s marine oil, the global supply outlook remains weak,” the report said.
However, the report’s “retention” of Middle East risks is the global buildup of artificial intelligence (AI). In the midst of the increasing use of technology, insurance and reinsurance are needed throughout the process.
Swiss Riley said this was particularly beneficial for Asian economies. “Rising semiconductor exports to some parts of Asia have largely offset the impact of higher oil prices,” the report said.
Jerome Jean Hegheli, chief economist at Swiss Re Group, warned that geopolitical fragmentation could still undermine these growth opportunities. “I can give an example of Asia where you see fragmentation risk and it’s not just in capital markets but also in export restrictions on semiconductors or restrictions on foreign direct investment in sensitive technologies. Especially in today’s global race for AI and also in digital and physical infrastructure. ’
Investment at this level could be costly in the medium term as data centers, electrification and new factories compete for the same energy, grid capacity and manufacturing resources. “This could add to cost pressures by boosting growth,” the report said. —Agency
