Insurance — Strait of Hormuz closure cascades through reinsurance reserves, energy supply chains, and geopolitical risk pricing as soft property market masks deeper casualty strains

Insurance · 2026-05-12

The insurance industry faces a split-screen reality this week. On one side, the soft commercial property market continues its downward rate trajectory, fueled by record reinsurer capital — Gallagher Re reports 76% of reinsurers posted double-digit capital growth in 2025. On the other, geopolitical risk is escalating fast: Swiss Re booked $400M in fresh reserves for Middle East conflict exposure,…