War risk insurance costs surge nearly 20-fold amid U.S.-Iran tensions
Insurance costs for war risks in West Asia have shot up nearly 20 times as U.S.-Iran tensions heat up near the Strait of Hormuz.
Now, covering $100 million in war-related damage costs $5 million a year instead of $250,000.
Joe Peiser of Aon says this jump reflects real worries about possible attacks disrupting things like energy supplies and data centers.
Insurers cap digital cover at $100 million
Insurers have seriously cut back how much they'll cover: digital infrastructure coverage now tops out at $100 million, way down from the old $3 billion limits.
Attacks like Iranian drone strikes on data centers operated by Amazon Web Services in the United Arab Emirates have made insurers nervous, with global insurers, including Lloyd's of London, now exposed to about $50 billion across West Asia.
There's growing concern that if conflict breaks out, insurance losses here could even top those seen during the war in Ukraine—making risk planning more important than ever for businesses in the region.