War Risk Insurance Demand Rises Amid Indo-Pak Tensions Following Operation Sindoor

Mumbai (TOI) — Insurance providers across India have begun receiving a surge of enquiries for war risk cover following the recent military initiative, Operation Sindoor, carried out by Indian forces. Industry insiders say the sudden spike in demand is testing the sector’s preparedness for high-risk underwriting, especially in the marine and aviation segments.

For cargo in transit, however, some flexibility remains. War risks are not included in standard marine cargo policies and must be added through a specific endorsement typically accompanied by a steep premium.

The ripple effect is also being felt in the aviation sector. Experts suggest that if the India-Pakistan tensions escalate, the reinsurance market is likely to respond with tighter terms and higher costs.

“Although there’s no systemic disruption yet, we’re anticipating selective pricing corrections, revised exclusions, and a cautious stance from global reinsurers,” said Nymphea Batra, CEO of Guy Carpenter India. “If tensions continue or incidents intensify, portfolio de-risking will become more prominent.”

War risk insurance—both marine and aviation is traditionally seen as a high-stakes product, often sourced internationally due to limited domestic capacity. Pricing is notoriously volatile and influenced heavily by geopolitical events.