Insurers want marine insurance pool to continue even after ceasefire

Mumbai: With the cessation of hostilities between the US and Iran hopes have risen of normalization of trade, but Indian insurers plan to retain the marine insurance pool to ensure that there is enough domestic capacity to ensure that trade is protected when similar geopolitical events arise in future.Insurers and brokers said that while the easing of tensions in the Persian Gulf is a positive development, the return to normalcy in marine war risk insurance will be gradual, with capacity, pricing and underwriting discipline taking time to stabilise.Deepak Sankar, Head, Commercial Business Distribution at TATA AIG General Insurance Company, said insurers do not expect an immediate normalization of war risk cover. “We do not see the normalisation of war risk insurance overnight, following a peace announcement.

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