Insurers to cancel policies and raise prices for ships in Gulf and Strait of Hormuz
FT.COM
war risk insurance
SUMMARY

Insurers are cancelling war risk policies and sharply increasing premiums for ships transiting the Gulf and Strait of Hormuz following US and Israeli strikes on Iran and Iran's subsequent retaliatory attacks on US bases in the Middle East.

Brokers reported that war risk underwriters issued cancellation notices on Saturday for vessels in the region, with premiums expected to rise by up to 50% when markets reopen on Monday. This rapid action reflects the accelerated escalation of the conflict. Previously, Gulf transit premiums stood at approximately 0.25% of a vessel's replacement value.

Advertisement
Scroll to continue reading