London’s marine insurance sector has expanded its designation of high-risk areas in the Gulf region amid escalating Middle Eastern conflicts, according to an advisory released on Tuesday. The Joint War Committee (JWC), which includes members of the Lloyd’s Market Association and representatives from the London insurance industry, closely monitors these guidelines, which significantly impact underwriters’ decisions regarding insurance premiums.
The recent revision by the JWC designates the waters surrounding Bahrain, Djibouti, Kuwait, Oman, and Qatar as high-risk zones. Scheduled discussions on Monday prompted this change, as noted by JWC secretary Neil Roberts, highlighting these areas as facing increased threats from war-related hazards. Since the escalation of tensions following U.S. and Israeli airstrikes on Iran, insurance premiums for Gulf war risks have soared fivefold, adding substantial costs—sometimes hundreds of thousands of dollars—to shipping expenses.
Industry experts indicate that adjusting high-risk designations aims to close coverage gaps that previously left vessels vulnerable to war risks. Munro Anderson of Vessel Protect stated that the JWC’s expanded classifications could help stabilize global supply chains by reducing uncertainty related to the transport of energy, commodities, and essential goods.
