-- The Middle East conflict indirectly impacts Asia-Pacific insurers mostly through financial market volatility, S&P Global Ratings said in a recent release.
The rating agency expects risks to be manageable under its base-case scenario of the war peaking and the Strait of Hormuz's closure easing during April.
S&P expects the insurers to have ample capital buffers to cushion against investment and underwriting stresses from the conflict under the base-case scenario.
However, risks could exacerbate under further disruption in the oil markets, with insurers from low-income net energy-importing economies the most exposed, S&P said.
Possible losses for the region's insurers will stem from marine and cargo policies given Middle Eastern trade flows, although the segment accounts for a small portion of overall premiums, S&P said.
A protracted conflict would raise input costs for insurers, dampen the macroeconomic environment, and worsen living costs, according to credit analyst Philip Chung.
Meanwhile, nonlife insurers would face increased claims expenses in motor, property, and commercial lines, leading to increased premiums, the analyst said.