The Member of Parliament for Abuakwa South, Kingsley Agyemang, has warned that escalating tensions in the Middle East could disrupt the global insurance market and negatively impact Ghana’s insurance sector.
According to him, the ongoing conflict involving Israel, Iran, and the United States is already creating uncertainty in global maritime insurance, particularly around the strategic Strait of Hormuz—a key shipping route that handles about 20 percent of the world’s oil trade.
Dr Agyemang, an insurance expert, said war-risk insurance premiums for vessels operating in the Gulf region could rise sharply if the conflict continues.
He projected that premiums could increase by between 50 and 100 percent in the coming weeks as insurers reassess the level of risk associated with shipping activities in the region.
Speaking on JoyNews, he explained that rising premiums could significantly increase the cost of global shipping and trade, with ripple effects on supply chains and energy markets.
Dr Agyemang cautioned that although the conflict is occurring far from Ghana, its economic consequences could still be felt locally through higher shipping costs, increased insurance premiums, and disruptions in global trade.
He therefore urged policymakers and industry players to closely monitor developments and prepare for possible economic impacts on the country’s insurance sector.
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