New Delhi, March 12 -- Insurers and reinsurers that provide coverage of complex risks such as marine, aviation and political violence are likely to face outsized claims as a result of the ongoing Iran conflict, said Moody's Ratings.

The insurance service providers are also benefiting from an increase in the price of political violence and terrorism (PVT) coverage amid rising demand from businesses looking to protect assets in the conflict-hit Gulf region.

The rating agency also expects losses to be manageable for large, diversified insurers - thanks to their careful risk selection, aggregate claims limits and reinsurance protection.

"War exclusion clauses will also provide some insulation, although these will likely face legal challeng...