Korean insurers face rising losses, reinsurance strain from prolonged Middle East conflict
As tensions in the Middle East drag on and the Strait of Hormuz remains in a chokehold, Korean insurers are bracing for worsening loss ratios — fallout that could drive up premiums and add to inflationary pressure on the overall economy, according to industry officials Wednesday. The disruption to the key shipping corridor, which carries roughly one-fifth of the world’s oil and gas, following the Feb. 28 strikes on Iran by the U.S. and Israel, has rippled across insurers’ underwriting and investment portfolios. For Korean companies, the strain is most visible in marine hulls and cargo lines, with 26 vessels reported stranded in the Persian Gulf in early March. “As of now, we’re not seeing a steady stream of direct vessel losses in the Strait of Hormuz. But the longer the disruption drags on, the more costs build up, weighing on insurers’ bottom lines,” an official at a local non-life insurance company said. “In wartime, insurers typically cancel previous marine policies and reoffer coverage at higher war-risk premiums, leaving clients to opt in. And if the situation stabi
Mar 25, 2026By Park Han-sol
