Global insurance prices to see some correction on US-Iran deal, but full normalization to take time
In an interview with Mint last week, Joe Peiser, global chief executive of risk capital at Aon Insurance Brokers, said that while insurers are criticized for cancelling insurance when there is a war or conflict, insurers do it to reprice the cover as per current risks. “Insurers tend to reprice the insurance, they don’t walk away. That’s how the business has been done for 300 years,” he said, adding that the alternative is to pay a higher price all the time, which nobody wants. “The tried and true mechanism is to have the price follow the actual risk.”
Post Comment