Insurers: The war in Iran raises the bill for damages

The ongoing conflict in Iran is significantly impacting the insurance market, with Lloyd's of London anticipating approximately £1.4 billion (around $1.9 billion) in insurance losses related to the Middle East conflict. These losses primarily stem from infrastructure damage on land, as well as political violence and terrorism coverage, rather than solely maritime transport risks in the Strait of Hormuz. Despite these substantial costs, Lloyd's reported a pre-tax profit of £3.5 billion in the first half of 2026, though this was lower than the £4.2 billion in the same period of 2025.