While 21st century businesses have no other option but to take the volatile geopolitics into consideration while expanding their operations, the insurance sector faces the challenge of accurately assessing the possible outcome of damages and calculating appropriate premiums to charge.

As of 2026, war insurance remains an unknown quantity for insurance companies, with a high risk that a policy issued in this domain could lead to insolvency.

While industries like aviation and maritime trade still get specific war insurance options tailored to their needs, International Finance, using the ongoing Middle East conflict as a case study, examines how the broader War risk insurance industry has come under tremendous stress.

In Dire “Straits at Hormuz”

On February 28, 2026, the coalition of the US and Israel launched targeted air raids against Iran’s military and missile infrastructures, along with its decision-makers, repeating a similar act from 2025, killing the Western Asian nation’s Supreme Leader Ali Khamenei and many senior government and military officials.

Since then, Iran’s retaliatory missile and drone attacks across the Middle East have introduced chaos in the entire region. Apart from the American bases located in the region, energy production facilities are being attacked, while maritime trade through the Strait of Hormuz (one of the important shipping lanes) faces severe disruption.

While aviation and maritime trade are known for getting specific war insurance options, immediately after the conflict’s beginning, marine insurers started cancelling war risk coverage for vessels, as three tankers were damaged in the first week.

Through the Strait, oil equal to about one-fifth of global demand is moved by Saudi Arabia, the United Arab Emirates (UAE), Iraq, Iran, and Kuwait, with tankers hauling diesel, jet fuel, gasoline and other products. While maritime insurance majors, including Gard, Skuld, NorthStandard, the London P&I Club, and the American Club, excluded Iranian waters, Gulf and adjacent waters from their War risk insurance commitments, Skuld is reportedly working on a buy-back option to reinstate cover.

This move has led to a situation where the costs of shipping oil from the Middle East to Asia, already at six-year highs, could put the global energy trade under tremendous financial stress.

By March 13, the rates for a weekly coverage reportedly stood around ten times higher than before the beginning of the conflict, raising the transportation cost in the shipping corridor as well.

Nick Francis, Partner with Kennedys Legal Solutions in Singapore and Hong Kong, told International Finance that the coverage rise should be viewed using the parameter called additional war risks premiums (AWRP).

“AWRP, as the name suggests, is driven by risk. The risk in the Persian Gulf and surrounding areas has obviously escalated dramatically since the Iran conflict began. As a sidenote, while AWRP has exponentially increased, so have charter rates for these vessels – particularly tankers – so owners/operators are willing to pay the AWRP (which is usually passed on to charterers of vessels under charterparties in any event),” said Nick.

According to the marine journal Lloyd’s List, as of March 13, high-risk voyages were being quoted at approximately 7.5% of the ship’s value. This ratio may rise to 10% or more. Before the war onset, additional premiums (AP) for voyages through the Middle East Gulf (MEG) typically ranged from 0.15% to 0.25%.

The geopolitical developments in the last three to four years (including those in Ukraine and the Suez Canal) have made one thing clear: the choking of shipping lanes will be the new normal. In that case, will it add pressure to the WRI industry?

Nick, a leading shipping and international trade lawyer, told International Finance, “The insurance industry is built on an ability to price risk. I think the market is well steeled for the current conflict, given the recent experiences with the Black Sea/Sea of Azov following the Russian invasion of Ukraine, and the Houthi attacks in the Red Sea.”

Could the insurers have handled the Hormuz situation in a better manner?

Nick said, “The insurance industry is there to provide cover for various risks, which it does. It doesn’t create the risk.”

Shipping sector in a tight spot

Discussing risks, things are getting uncertain within the commercial marine industry itself, with a strong probability of hull rates rising. Dylan Mortimer, Vice-President of New York-based insurance player Marsh, told the Reinsurance News that there could be near-term rate increases for the Marine Hull line of businesses operating in the Gulf region by 25%-50%, with underwriters swiftly cancelling certain annual hull war policies under standard seven-day war clauses.

Stephen Rudman, head of marine for Asia at Aon, told Modern Diplomacy that the increase in hull war market rates should be seen as a quick response to the risk of significant losses if multiple vessels are attacked at the Strait of Hormuz. According to Rudman, there will be heightened underwriting scrutiny for voyages into or near sensitive (conflict) zones, including a potential requirement for prior approval.

Estimates by global investment giant Jefferies suggests that damages from seven reported vessels at the Strait (figures as of March 6) could lead to industry losses of up to USD 1.75 billion. Tankers valued at USD 200-USD $300 million could face new insurance rates of approximately 3%, translating to about USD 7.5 million in premiums, a significant rise from roughly USD 625,000 before the conflict.

Shedding further light upon the crisis, Nick noted, “When costs rise for the owner and operators of vessels, they will inevitably be priced into charter rates. Increased cargo premiums will obviously affect the landed value of goods – and will eventually be passed on to the end consumer.”

According to Sheila Cameron from the Lloyd’s Market Association, by March 6, about 1,000 vessels (mostly oil and gas tankers), with a total hull value exceeding USD 25 billion were in the Persian/Arabian Gulf region.

Stating that while most of these vessels are insured within the London market, she told Modern Diplomacy, “Reinsurers may respond to increased risks by adjusting the conditions under which their liability begins, potentially leaving main insurers with more risk and stress on their solvency levels.”

Also, the International Group of P&I Clubs has ceased coverage for vessels operating in and around Iran. Without it, shipowners will face open-ended liabilities, often halting voyages in high-risk areas. Industry reports reveal that such war-risk exclusions in the past led to reduced traffic and higher freight costs, and the same pattern can now re-emerge in the Persian Gulf as well.

According to London-headquartered GlobalData, reinsurers are repricing exposures across sectors such as marine, aviation and energy, while maintaining coverage continuity wherever possible. The conflict is affecting the sector through both direct exposure to loss events and indirect pressures, including higher reinsurance costs, capital flows, and inflation.

If anything, the changing geopolitics have taught the 21st century global socio-economic order that businesses need to engage with insurers to address disruptions and risks tied to war-like events, without any laxity.

Expressing confidence in the sector’s resilience, Nick concluded, “War is not new. War risk insurers have been recently dealing with the events in the Black Sea/Sea of Azov, involving missile strikes on vessels and, later, numerous constructive total losses (following a 12-month deprivation period), and missile attacks by Houthis in the Red Sea – so they are well- prepared to deal with the current events in the Persian Gulf.”

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“There was no shortage of headwinds to customer satisfaction with the property claims experience this year, particularly when it comes to the financial burden customers face, but carriers were really able to counter the negative effects of higher prices by delivering exceptional service,” said Mark Garrett, director of insurance intelligence at JD Power.

“Thanks to investments made over the past several years in digital channels that make it faster and easier to communicate with customers throughout the claims process, insurers have made important efficiency gains that are translating into better customer experience. Despite the industry-wide improvement, however, customer expectations are not always met, with almost one in five customers indicating their experience was not great, so there is still work to do,” the official added further.

“Customers are satisfied despite cost pressures: A total of 19% of homeowners’ insurance customers faced insurer-driven premium hikes, out-of-pocket expenses, and a deductible of USD 1,000 or more. Even though satisfaction among customers who faced all three of these challenges averages only 606 (on a 1,000-point scale) this year, overall customer satisfaction for the industry rises 20 points to 702,” the study noted.

“The average amount of time required to complete a repair is 29.6 days, down 2.8 days from 2025, and the average amount of time before customers receive final payment is 40.7 days, down 3.4 days from last year. Repair cycle times are heavily influenced by the use of direct repair programmes, through which the insurance company connects homeowners with a contractor from their approved network. Among the 41% of customers using these programmes, there is a notable improvement in the average time to start work, leading to faster overall repairs—averaging more than two weeks shorter for higher-severity claims compared to those not using the programmes,” it added.

While the utilisation of digital tools increased throughout touchpoints of an insurance claim, be it reporting the first notice of loss to submitting photos used to estimate/pay the claim, apart from receiving updates, overall levels of satisfaction remained higher among customers using digital tools for each of these interactions, compared to those who performed the same functions offline.

“While 51% of insurers fully meet customer expectations for how their policy will work, and 15% exceed those expectations, 34% of customers say their policy did not fully meet expectations. Common issues experienced among those whose policies did not fully meet expectations are a lack of explanations or the opportunity to discuss the estimate/settlement; high out-of-pocket costs; and frequent customer-initiated contacts,” the report concluded.

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The partnership will address the increasing demand for contextual insurance experiences at the point of sale (PoS), thereby providing a product-agnostic solution to enable businesses to launch and scale bespoke insurance programmes at short notice, while keeping pace with sustainability, innovation, and evolving client needs.

Unlike conventional models of insurance sector tie-ups, the Willis-Qover partnership will focus on the embedded and affinity space, allowing United Kingdom-based businesses, irrespective of their industry verticals, to directly incorporate insurance products into customer journeys.

With disruptive methods like APIs, real-time dashboards, and AI-enhanced claims, Qover has redefined the practice of embedded insurance orchestration (a modular, technology-driven framework allowing businesses to seamlessly integrate tailored insurance products directly into their customer journeys), while Willis is known for providing market access, insurance design capabilities, and local execution through its advanced tools.

Anthony Borgman, Head of Affinity, GB at Willis, told the media, “Strengthening our ecosystem is a core part of how we continue to meet the evolving needs of our GB Affinity clients and deliver agile distribution capability. Partnering with Qover enhances the connected infrastructure behind our propositions – giving us greater flexibility, improved speed to market, and more ways to support clients’ brands operating in a wide range of industry verticals. It’s an important step in our journey, and there’s more to come on this in the year ahead.”

“Insurance experiences must be seamless, contextual and simple. We are excited to support Willis’ GB Affinity ambitions as they continue to build the next generation of partner solutions,” Quentin Colmant, CEO and Co-Founder at Qover, remarked during the occasion.

However, the partnership will meet an immediate test, in the form of both British and European regulators scrutinising the tie-up for add‑on and bundled products, placing more emphasis on product governance, fair value and clear communication of coverage and exclusions. Both Willis and Qover may have to explain how their products are sold, how customers use them and whether they receive appropriate outcomes over time.

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The Iranian Revolutionary Guard announced on March 5 that the choke-point would be under their control for the duration of the war. This makes any voyage through the narrow pass extremely risky.

IRGC Navy official Mohammad Akbarzadeh claimed, “Currently, the Strait of Hormuz is under the complete control of the Islamic Republic’s Navy,” warning ships risk missile or drone damage.

Major international container liners like Maersk, MSC, and CMA CGM are all halting operations effective immediately and navigating their vessels to safe contingency ports.

Among them, Danish shipping titan Maersk also halted cargo bookings from most Gulf markets after a war-driven risk assessment. The company confirmed that there shall be no more bookings accepted from Iraq, Qatar, UAE, Kuwait, Bahrain, and certain parts of Saudi Arabia and Oman “until further notice.” Maersk assured that there will be humanitarian exceptions that apply to food, medicine, and essential goods.

However, operations to Jordan and Lebanon will remain unaffected, and there are two Maersk vessels in the Gulf currently.

The 33-kilometre-long strait controls roughly 20% of all global crude oil shipments, as well as noteworthy volumes of liquefied natural gas.

Khaled Ramadan, a Cairo-based economist, said that oil and gas transit through the strait would fall by 80% with escalating tensions. Consequently, worldwide prices for oil and goods are expected to spike.

Maersk is not the only company wary of Gulf waters. German carrier Hapag-Lloyd also suspended shipments to and from the upper Gulf. Hapag-Lloyd said: The suspension is “a necessary response to current security conditions and regulatory restrictions,” as “safety of its crews, vessels, and cargo remains its highest priority.”

China’s COSCO cancelled bookings to multiple Gulf ports. Mediterranean Shipping Co. also declared an end of voyage for all Gulf-bound cargo, is diverting vessels to the nearest safe port, and is imposing a surcharge of $800 per container.

France’s CMA CGM prioritised the safety of its crew and vessel, and APM Terminals Bahrain also used emergency measures to divert its vessels and sailors to Khalifa bin Salman Port.

Inflammatory remarks by Iranians like Brig. Gen. Sardar Ebrahim Jabbari, who said that the “Strait of Hormuz is closed,” while vowing to “burn any ship that tries to pass”, is of great concern to insurers.

The insurance markets are reassessing their insurance premiums. It’s going to be an expensive affair to insure all the transport ships passing through the strait under such perilous conditions. Some prominent London insurers are still willing to offer coverage, but at extremely sharp premiums that are rising daily.

Marsh McLennan, an insurance broker, met with US officials to remedy maritime trade woes amidst the deepening crisis. Without de-escalation, global supply chains and energy markets will be consumed by inflationary chaos.

However, US officials have promised respite and intervention. US President Donald Trump claimed that the US Development Finance Corporation (DFC) will provide political risk insurance at a very reasonable price, and added, “If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz.”

McLennan noted pre-conflict rates were 0.25%, now doubling as “insurers are cancelling pre-existing war risk policies and looking to renegotiate at higher prices.”

War-risk premiums could rise up to 50%, e.g., from $250,000 to $375,000 for a $100M vessel per voyage.

Experts say this could be part of Iran’s economic war. It doesn’t have to sink every ship that passes through the Strait of Hormuz. It just needs to make it unsafe enough to be uninsurable. Thereby driving up the costs of shipping and consequently the goods astronomically.

“Tanker traffic depends not just on whether ships can technically pass through Hormuz, but on whether operators can obtain war-risk coverage… Once coverage becomes uncertain or prohibitively expensive, trade slows faster than the formal status of the waterway changes. Insurance, in effect, becomes the market’s enforcement mechanism for geopolitical fear,” said Umud Shokri, energy strategist at Stimson Centre.

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Realising the challenge, Chubb Life Thailand, which places its customers at the heart of everything in its operations, has now committed itself to developing innovative products and services that meet the needs of Thai citizens at every stage of life.

“We have designed our critical illness insurance products ‘CI Extra Plus 90/10’ and ‘CI Extra Plus 90/20′, which provide comprehensive lifetime coverage for both life and critical illness to address customers’ needs for long-term protection planning and financial security for themselves and their families,” the company told International Finance.

The “CI Extra Plus” product, uniquely tailored to address diverse consumer needs, segments the market into three distinct groups: Working Adults (individuals who seek to plan and secure life insurance and critical illness coverage for themselves and their families), Parents/Guardians (individuals who wish to establish life insurance and critical illness protection to secure their children’s future), and Individuals Concerned About Critical Illness (people seeking a lump sum payment of money to prepare for future uncertainties).

CI Extra Plus offers long-term coverage for life and critical illnesses until age 90. The product also covers 65 critical illnesses, including five diseases for Critical Illness Group 1 (as declared by the Office of Insurance Commission), 45 diseases for Critical Illness Group 2, and 15 juvenile diseases.

“When diagnosed with a disease in Critical Illness Group 1, customers receive a 25% payout of the initial sum assured and can claim up to four times. If a significant illness is identified in Critical Illness Group 2, customers will receive a one-time payment of up to 100% of the initial sum insured and will no longer need to pay premiums, while still enjoying ongoing coverage,” Chubb Life Thailand noted.

Medical treatment expenses for Group 2 diseases are covered, and those who maintain their insurance throughout the contract period receive an additional payout of 10% of the initial sum. The premium remains the same throughout this period. Customers can also select their premium payment period, with options of either 10 years or 20 years. In terms of covering critical illnesses affecting juveniles, CI Extra Plus provides a special lump sum of 100% for the diagnosis of these diseases between the ages of 31 days and 15 years.

“The maximum coverage is up to 115% of the initial sum assured, while in cases of critical illnesses found in juveniles, this can increase up to 215% of the initial sum assured,” the company added.

To vividly promote and communicate the transformative aspects of CI Extra Plus, Chubb Life Thailand chose popular actor Chaiyapol Julian Poupart and his family. His portrayal of the story about protecting loved ones created an authentic advertising campaign that reflected the brand’s deep understanding of modern consumers, who value health security and family care. The warm and relatable presence of Chaiyapol Julian Poupart added credibility and created an emotional connection between Chubb Life Thailand and its customers.

“The campaign strategically emphasises the importance of insurance while instilling a sense of ‘need’ by comparing life to the familiar game of Monopoly. This clever analogy drives home the point that in real life, there is no ‘Get Out of Jail Free Card’ to escape the challenges of a critical illness without cost. Instead, ‘CI Extra Plus’ serves as an essential tool that enables you and your family to move forward confidently, reducing financial burdens and offering peace of mind at every stage of life,” Chubb Life Thailand asserted.

Ultimately, by truly understanding consumer needs, Chubb Life Thailand has successfully proven that a “great idea” can evolve into a product that allows Thais to plan long-term protection against life’s uncertainties, serving as a financial shield for themselves and their loved ones.

The post Chubb Life Thailand targets youth health risks with new cover appeared first on International Finance.

Elaborating on this in a report, titled “Oman — Listed Insurance Industry Performance Analysis – Q3 2025”, released on December 22, BADRI said that the after-tax profit of the eight listed Omani insurance companies surged by 935%, shifting to a profit of OMR28.4 million (USD 73.9 million) in the first three quarters of this year (Q3 2025), registering a stunning turnaround from a loss of OMR3.4 million in the same period in 2024.

“The Sultanate’s biggest insurer, LIVA, which had recorded a loss the previous year due to adverse weather events, achieved a strong turnaround with a 226% increase in profit in Q3 2025, substantially enhancing overall industry results. Excluding LIVA, the sector still posted a robust 108% year-on-year profit growth. It is important to note that the net profit of takaful companies is reported on a combined basis, encompassing both policyholder and shareholder accounts for comparability,” the study stated.

At the same point in time, conventional insurers achieved a 13% revenue increase, with the cumulative figure rising to OMR472 million in Q3 2025 from OMR417 million in the corresponding period in 2024. LIVA drove this growth by posting a 24% increase and maintaining the largest market share.

“In the Shariah-compliant insurance market, the performance of takaful companies remained consistent with a modest 0.3% growth in revenue that increased marginally from OMR55.0 million in Q3 2024 to OMR55.1 million in Q3 2025. Notably, takaful insurers implemented IFRS 17 during the year, aligning their financial reporting with broader industry standards,” remarked the BADRI study.

Insurance service results for the analysed listed companies surged by 3,452%, rising from OMR0.8 million to OMR29.5 million, mainly due to LIVA’s operational turnaround. Excluding that, the overall increase would be 19% over the Q3 2024 figures.

Predicting the road for the Gulf country’s insurance sector, BADRI concluded, “Rising costs, higher climate-related claims, and aggressive pricing strategies are placing pressure on industry margins. To stay competitive, companies need to enhance risk management, refine pricing models, control expenses, and strengthen their financial position. Looking ahead, insurers that adapt swiftly, leverage advanced data analytics, and proactively plan for emerging risks will be best positioned to succeed in an increasingly challenging market.”

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Burgan Takaful has assembled a talented team to meet the demands of individual and corporate clients, ensuring the highest standards of customer satisfaction and service quality. The team is guided by industry veteran Amro Mohamed Saleh Khiwa, who, as the Vice-Chairman and CEO of Burgan Takaful, oversees the company’s strategic growth and market positioning within Kuwait’s Takaful sector.

Amro Mohamed Saleh Khiwa’s focus on customer engagement, operational excellence, and long-term trust-building has helped the company become a respected name in the region’s Shariah-compliant insurance sector.

In an exclusive interview with International Finance, Amro Mohamed Saleh Khiwa spoke about Burgan Takaful’s culture of smart innovation and commitment to serving the evolving needs of policyholders.

Burgan Takaful has built a strong presence in Kuwait. What has been the driving philosophy behind that success?

At Burgan Takaful, our growth is anchored in purpose. We don’t just offer insurance—we offer mutual protection based on ethical principles. Our commitment to people, community, and transparency drives everything we do. Whether we’re developing new products or engaging with customers, we ask whether this reflects Takaful’s core values. Our focus has always been to deliver peace of mind through trust and clarity, not just policies.

How are customer expectations evolving in the Takaful space?

We’re seeing a real shift. Customers today are looking for clarity, ease of access, and responsiveness. They want to understand what they’re getting and how it works. They value flexibility and personalised service. While many still prefer in-person consultation, there’s a growing demand for simplified, self-service touchpoints. Our role is to respond to those expectations without losing the personal, trust-based relationships that define our brand.

What steps has Burgan Takaful taken to enhance its service experience?

We’ve focused heavily on operational excellence and accessibility. This includes faster turnaround on policy issuance, better customer support systems, and more streamlined claims processes. We’ve also upgraded our internal tools to serve clients more efficiently and accurately. While we are gradually exploring more digital solutions, our current efforts prioritise service consistency and customer comfort—both online and offline.

Do you see technology playing a larger role for Burgan Takaful soon?

Absolutely, but with intention. We believe in measured innovation—solutions that add value rather than technology for its own sake. We’re exploring digital tools that can enhance customer engagement, automate certain workflows, and improve access to policy information. These developments will occur in phases, ensuring they align with our ethical commitments and regulatory standards.

Many Takaful operators are turning to mobile platforms and AI tools. How does that trend impact your outlook?

We’re watching those trends closely and recognise their potential. Mobile platforms, AI-based claims management, and predictive analytics are exciting areas. But each must be evaluated through the lens of Shariah compliance and practicality in our market. We’re open to these innovations, especially where they can improve speed, transparency, and customer empowerment. However, our approach will remain careful and compliant at every step.

What distinguishes Burgan Takaful in a competitive insurance market?

It comes down to consistency, clarity, and care. We’re not the loudest in the market, but we’re committed to doing things right. Every policy we issue is built on a foundation of fairness and clear contribution-risk sharing. We maintain strong internal controls and a highly experienced team, which helps us deliver dependable service across every customer interaction. That consistency builds long-term trust, and in this industry, trust is everything.

What’s next for Burgan Takaful?

We’re focused on steady, sustainable growth. This includes refining our product portfolio, expanding customer education efforts, and gradually integrating more digital conveniences. Most importantly, we aim to continue strengthening the bond with our customers. Takaful is based on mutual responsibility, and we want every client to feel they’re part of something meaningful, not just protected but valued.

As Burgan Takaful charts its path forward, the company remains committed to evolving in ways that honour tradition and the modern-day needs of its clients. With steady leadership and a customer-first approach, it continues to uphold the core values of Takaful while embracing the future gradually, step by step.

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A Landmark Achievement: Two Prestigious Global Awards In 2024

In 2024, MEDGULF achieved a significant milestone by winning two prestigious global awards from International Finance Publications Ltd. These accolades highlight the company’s leadership in delivering innovative insurance solutions and its dedication to meeting the evolving needs of the Saudi market.

Best Motor Claims Management Company

One of the awards, ‘Best Motor Claims Management Company — Saudi Arabia 2024’, recognises MEDGULF’s commitment to revolutionising its motor claims system. Through the use of cutting-edge technology and a specialised claims management team, the company has streamlined the claims process, ensuring a seamless and efficient experience for customers. This award reflects MEDGULF’s ongoing efforts to enhance customer satisfaction and build trust within the Kingdom.

Best Innovative Health Insurance Partnership

MEDGULF also received the ‘Best Innovative Health Insurance Partnership — Saudi Arabia 2024’ award, celebrating its strategic collaboration with the Roshn Saudi League. This partnership aims to provide athletes with tailored insurance solutions, promoting both health awareness and wellness across the Kingdom. The award is a testament to MEDGULF’s ability to create forward-thinking insurance solutions that support key sectors of society.

Innovation At The Heart Of MEDGULF’s Success

These prestigious awards are a reflection of MEDGULF’s commitment to innovation and quality. By continuously developing flexible and advanced solutions that meet the needs of its clients, the company upholds global standards in the insurance industry.

Looking Towards A Secure Future

With a relentless focus on customer satisfaction and sustainable growth, MEDGULF is committed to investing in enhanced services and expanding partnerships. Through these efforts, the company continues to build a more secure and stable future for individuals and businesses across the Kingdom.

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“Even as shifting global dynamics challenge insurers, the 2025 Global Insurance Outlook shows there have never been more viable paths to innovation-led growth across the industry. Indeed, the vast gaps in protections against cyber and climate threats – with 99% of losses from cyberattacks and 60% from natural disasters uninsured – along with the massive shortfall in retirement savings, present compelling value-creation opportunities. Strategically orienting the enterprise around richer data and fully modernised technology is one critical step,” says EY in its latest report.

The report also highlights how global insurers have delivered strong performance recently and are poised for steady gains in both mature and emerging economies, despite challenges. On the other hand, the rising demand for core protections and value-added services, along with new possibilities in risk assessment and pricing, will foster optimism within the industry about the future.

So, what can we expect from the industry in general?

The Impact Of Natural Disasters
Since losses from natural disasters now exceed USD 100 billion annually, they have become a significant challenge for insurers. Take the United States, for example, where insurers are avoiding high-risk regions such as Florida and California. As a result, property owners are confronted with higher premiums and more limited coverage.

This situation necessitates creative risk management techniques, with insurers using tools like predictive analytics and satellite imagery to more accurately assess and anticipate risks. Improving resilience and reducing financial strain will require cooperation with communities and governments.

Harnessing AI
Artificial Intelligence (AI) is transforming the insurance industry by enabling generative and predictive models to deliver highly customised experiences. Insurers are using artificial intelligence to improve fraud detection, streamline operations, and enhance underwriting procedures. Despite AI’s efficiency, issues such as algorithmic bias and data privacy need to be addressed. Strong governance frameworks must be implemented by insurers to ensure fairness and transparency in AI-driven decisions.

Operational Efficiencies And Automation
Insurance companies will be able to lower costs and improve service quality thanks to artificial intelligence-driven automation, which is expected to increase operational efficiency. Routine tasks can be automated, freeing up resources for strategic projects that improve compliance and customer satisfaction for insurers. This shift will also help insurers remain competitive in a rapidly changing market. However, to maximise these technologies, investments in workforce training will be necessary.

Embracing Customer-Centric Experiences
In sectors like retail and automotive, embedded insurance – where policies are bundled at the point of sale – is becoming more popular due to rising customer expectations. This model provides more accessibility and convenience, aligning with customer preferences for seamless, integrated solutions. To deliver value-added services that meet evolving demands, insurers must build strong partnerships and leverage technology.

The future of the insurance sector will depend on how well insurers manage these transformative trends, balancing creativity with ethical behaviour, and adapting to changing market conditions.

The post Insurance industry in 2025: Check out the key trends appeared first on International Finance.

In an exclusive interview with International Finance, CEO Lu Mon Aung discusses a range of topics, including insurance literacy, challenges overcome by KBZMS General Insurance, the company’s plans for 2025, and more.

Myanmar’s insurance market is still developing. How does KBZMS General Insurance view the current state of insurance literacy in the country?

Insurance literacy in Myanmar is still evolving, with many individuals and businesses unfamiliar with the benefits of insurance. At KBZMS General Insurance, we see this as both a challenge and an opportunity to make a positive impact.

Our mission is to improve the quality of life in Myanmar by providing the right insurance solutions for all. To achieve this, we’ve taken proactive steps to educate the public and address misconceptions about insurance. For example, we’ve launched a YouTube Channel featuring a podcast series designed to debunk myths and educate the next generation about the benefits of insurance. Additionally, we host Insurance Knowledge Sharing Sessions that are open to anyone interested, helping communities and workplaces learn more about insurance.

The global economy has faced significant challenges in recent years, including inflation, supply chain disruptions, and geopolitical uncertainties. How is KBZMS navigating this difficult climate?

Despite these global challenges, KBZMS remains focused on providing reliable insurance solutions. Our joint venture with Mitsui Sumitomo Insurance (MSI) in 2019 has strengthened our capabilities by combining global expertise with our local market knowledge. This partnership has allowed us to develop products like Industrial All Risks (IAR), Construction All Risks (CAR), and Bailee’s Liability Insurance, helping businesses navigate the current volatile environment.

We’ve also embraced digital transformation to streamline operations and enhance customer experience. Our digital solutions, including online policy management, claims processing, and transactions for Travel and Personal Accident insurance, ensure that we continue delivering seamless service even in these uncertain times.

KBZMS was recently recognised as the ‘Best General Insurance Provider – Myanmar 2024’. What does this achievement mean for the company?

Being recognised as the ‘Best General Insurance Provider – Myanmar 2024’ reflects the trust and confidence our customers and partners have placed in us. This recognition is a reflection of the trust we have earned. It serves as a reminder of our responsibility to maintain high standards of professionalism, innovation, and customer service. We remain committed to delivering the right insurance solutions and continuing to raise the bar for the industry.

What sets KBZMS apart in Myanmar’s insurance industry?

KBZMS stands out due to our unique blend of local expertise and global best practices. As Myanmar’s first licensed private insurer, we have built a strong foundation based on a deep understanding of the market. Our team of experienced local professionals provides invaluable insights that allow us to craft tailored solutions for both individuals and businesses in Myanmar.

Our partnership with Mitsui Sumitomo Insurance (MSI) further enhances our ability to deliver world-class products while staying attuned to local needs. Whether offering protection for a family’s home, a small business’s assets, or a large enterprise’s operations, we provide comprehensive coverage that offers peace of mind. At KBZMS, we are committed to building a more secure, sustainable future for Myanmar.

What’s next for KBZMS General Insurance?

Moving forward, we are focused on expanding our product portfolio, enhancing digital capabilities, and further engaging with communities to improve insurance literacy. Our vision is to empower individuals and businesses to thrive in an ever-changing world. Together, we are working towards a brighter, more secure future for Myanmar—one where everyone has access to the protection they need to succeed.

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