Full Capacity: Ceasefire’s limited lifeline for insurers

April 11 2026 by

Welcome to Full Capacity, a weekly briefing on all the most important developments of the past week with a personal take on the news from our editor-in-chief, Mithun Varkey, delivered to your inbox every Saturday.   

Dire straits. The US International Development Finance Corporation (DFC) and Chubb have doubled the reinsurance cover for ships transiting the Strait of Hormuz to US$40 billion, following the addition of six American insurance partners – Travelers, Liberty Mutual Insurance, Berkshire Hathaway, AIG, Starr and CNA. 

Growth spurt. India’s Gift City reported that the GWP written in the offshore centre had topped US$1.2 billion, representing 11x growth from the US$102 million in premiums five year ago. Gift City credited the growth in trade credit, marine, and aviation segments.  

Meanwhile, the centre’s rise as a reinsurance hub, especially with more and more reinsurers setting up there as a work around the onerous collateral requirements introduced by India’s regulator, will likely see the special economic zone posting stronger growth this year. 

(Re)inforcement. The Australian Reinsurance Pool Corporation (ARPC) has reached a major milestone in the operation of the cyclone reinsurance pool, with total claim payments now exceeding AU$1 billion (US$707 million).  

The ARPC has made payments relating to 20 declared cyclones and supported residential, small and medium enterprise, and strata policyholders across northern Australia since the pool was establishment in July 2022. 

Lotte shopping. Korean carrier Lotte’s owner, JKL Partners, is relaunching the sale of the non-life insurer, with teasers to be sent to prospective buyers this month, local media reported. 

Potential bidders reportedly include Korea Investment Holdings, Woori Financial Group, Shinhan Financial Group and BNK Financial Group. 

JKL Partners, which holds roughly a 77% stake, has mandated Samjong KPMG as the sell-side adviser, according to a report by Seoul Economic Daily. 

Lingering risks 

The US-Iran ceasefire announcement earlier this week offered relief to everyone who’s tired of measuring risk in headlines.  

But after the strikes in Lebanon, that fragile calm looks less fleeting and held together by hope, prayer and wishful thinking.  

Negotiations in Pakistan slated for Saturday may hinge on whether Israel’s campaign in Lebanon keeps escalating and talks could be derailed if fighting continues. 

The path back to normalcy looks fraught with challenges.  

International Monetary Fund (IMF) managing director Kristalina Georgieva forecasts subdued global growth from the Middle East war, citing “scarring effects” that persist long after hostilities end. 

“Even in a best case, there will be no neat and clean return to the status quo ante,” she warned.  

In the fund’s most hopeful scenario, spiralling energy costs, infrastructure damage, supply disruptions, and eroded market confidence will still drag growth below expectations. 

The IMF is anticipating offering US$50 billion in immediate aid as food insecurity threatens 45 million people.  

That’s the humanitarian bill. But it’s also the economic reality: when disruptions compound, recovery isn’t a straight line. 

Japan releasing additional oil reserves – 20 days’ worth from May, on top of what it has already started releasing – signals that policymakers expect continued volatility.  

So what does all of this mean for the (re)insurance sector beyond the immediate claims and payouts? 

Long-duration conflicts stretch the tail, harder-to-quantify secondary impacts, and escalating uncertainty about infrastructure, trade routes and systemic disruptions. 

And if the Strait of Hormuz is only partially reopened despite assurances of full access, that’s the kind of uncertainty insurers can’t “smooth” away.  

Shipping bottlenecks ripple outward into energy markets, freight costs, shipping insurance, and ultimately into economic growth itself. 

It means the (re)insurance industry is staring at a wider rut: not just losses from strikes, but losses from prolonged economic uncertainty.  

The ceasefire may slow the bleed and buy time, but it will be some time before the markets can regain confidence. 

People moves

Tokio Marine veteran Akihisa Hirata has joined Price Forbes’ Japan practice in the Singapore office. 

Helena Nikolas has joined AIG as head of commercial property in Singapore. 

Aon has appointed Minhyuk Jung (Mike) to head up its South Korea desk within its global broking centre. 

Oneglobal has promoted Sharron Khoo to Asia COO, while also elevating Andrew Ko to greater China CEO. 

Do check out our weekly people move round-up to stay up to speed on the most important appointments in the region.   

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