The global insurance industry is facing heightened risks due to escalating geopolitical conflicts and the increasing severity of natural disasters, industry leaders said at the 23rd Association of Insurers and Reinsurers of Developing Countries (AIRDC) conference. Natural disasters are causing catastrophic damages worldwide, necessitating enhanced risk management. The rising risk of war is prompting insurers to be more cautious, potentially leading to higher premiums or reduced coverage in high-risk areas. Thailand’s domestic insurance sector is expected to grow only 3% this year, partly due to severe floods, although the auto insurance segment is expanding by about 4%. Profits may decline if interest rates are cut, and economic growth could slow as a stronger baht affects exports.