Kathmandu. A two÷week ceasefire in the ongoing conflict between Iran and the United States could mark the first steps needed toward regional stability and gradual normalization of flows.
The comments were made by Louise Hart, Willis’ chief of Marines for Asia. He has focused on the impact of the transport sector after the latest developments.
Hart said the initial movement was expected to “allow operators to relocate and eventually exit the Strait of Hormuz after more than a month”, but activity is expected to resume more slowly than all at once. “From an insurance standpoint, the risk premiums associated with war are unlikely to decrease immediately,” he said. ’
However, Hat said there was already an opportunity for “significant easing through the widespread use of commercial levers, such as increased no-claims bonuses and other structured concessions in both hull and cargo”. “Underwriting will remain disciplined and will be evaluated on a case-by-case basis,” he said. However, capacity is available and can be deployed. ’
“Some conditions and warranties will still apply,” Hat added, including those related to U.S. or Israeli risks, and in some cases, permits from Iranian authorities. The overall situation is improving. ’
Hart said he expects insurers’ terms, interest and pricing flexibility to gradually increase if stability is maintained. –Agency
