The Member of Parliament for Abuakwa South Constituency and insurance expert, Dr. Kingsley Agyemang, is warning of a looming shake-up in the global insurance industry that could have serious consequences for Ghana’s already fragile insurance sector.
According to him, the escalating war involving Israel, Iran and the United States is beginning to rattle global insurance markets, particularly the maritime insurance segment that underpins international shipping and trade.
The conflict has now entered its twelfth day with sustained military activity across the Gulf region. Tensions remain high around the strategic Strait of Hormuz, a narrow waterway that handles nearly 20 percent of global oil trade. The passage remains partially closed to vessels from certain countries, creating uncertainty in one of the world’s most critical shipping corridors.
Beyond the immediate threat to global energy supplies, the war is also triggering deep anxiety within the global insurance market.
Dr Agyemang, who has worked as an insurance consultant for more than a decade, projects that maritime war-risk insurance premiums could surge dramatically if hostilities continue.
He estimates that premiums could rise by between 50 and 100 percent in the coming weeks as insurers reassess the level of risk associated with vessels operating in the Gulf region.
According to him, the war-related risk costs could climb to about 0.5 percent of a vessel’s insured value, effectively doubling current rates. In a worst-case scenario, premiums could even rise to around 1 percent of the insured value, representing a potential 300 percent increase.
Such a surge, he explained, would significantly raise the cost of global shipping and trade, with ripple effects across supply chains and energy markets.
Speaking on JoyNews, Dr Agyemang warned that countries like Ghana may have little control over the situation but must prepare for its economic consequences.
“Unfortunately, this looming impact is likely to affect not only the global logistics chain in terms of cargo volumes and the energy sector, but one key industry that is already feeling the pinch is the insurance sector,” he said.
He added that Ghana’s insurance industry, which is still developing, could face indirect shocks as global insurers adjust premiums and tighten coverage in response to the heightened geopolitical risk.
Dr Agyemang noted that while the conflict is unfolding thousands of miles away, its economic consequences could still reach Ghana through rising shipping costs, increased insurance premiums and disruptions in global trade flows.
“For countries like Ghana, there is very little we can do beyond preparing ourselves for the possible economic impact,” he said.
“As the war escalates, we can only watch developments closely and hope the situation stabilises soon.”
Source: Ghana/otecfmghana.com
