Market participants flag that DIFC facility may lead to potential withdrawal of private insurers, while operational risks could continue to restrict vessel movements in the Strait of Hormuz.
Reinsurers and brokers are exploring new programme designs to balance capital efficiency with growing digital risk exposures as cyber insurance continues expanding across global markets.
All APAC insurers surveyed reported moderate-to-very high concern about physical risk creating broader financial instability, but only 36% have integrated it into overall risk management.
While broadly aligning with global worries around supply chain disruptions leading to a Black Swan event, five APAC countries are more concerned over global internet outage.
