Impact of Geopolitical and Climate Risks on Global Trade Insurance Costs

A vessel that costs $125,000 to insure through the Gulf can cost $200,000 a week after a single incident. Most of us will never see that number. We just pay slightly more for something ordered online, without once thinking about the Strait of Hormuz.

Fast Company Middle East spoke to Akshay Sardana, CEO of Continental Group, for a long read on how insurance has quietly become one of the most reactive variables in global trade. Premiums that once moved annually now reprice within 72 hours of a significant event.

Akshay's framing of the two forces behind it has stayed with us: "Geopolitics is the fire alarm. Climate is the rising damp." One triggers an emergency response. The other steadily pushes up the baseline cost of moving anything at all. The end user pays for both.

He features throughout, alongside Marsh, S&P Global Ratings, United Africa Feeder Line and Scope Markets. Worth the seventeen minutes.

Read it here - https://bit.ly/4duGeHw

#globaltrade #insurancecosts #geopoliticalrisks #climatechange #tradesecurity