The global marine insurance industry continues to offer war risk coverage for vessels navigating the Persian Gulf and Red Sea, despite a surge in cancellations linked to escalating conflicts in the Middle East. The International Union of Marine Insurance (IUMI) announced that insurers are still providing war cover on a single-voyage basis, although they are closely monitoring the situation due to rapidly evolving security conditions.
Recent tensions, particularly missile and drone attacks on shipping, have caused a significant decline in vessel traffic through the Strait of Hormuz, one of the world’s vital energy routes. Although some members of the International Group of P&I Clubs have issued notices of cancellation for war-risk policies covering Iranian waters, leading ships to negotiate their coverage journey by journey, IUMI clarified that such notices do not equate to a complete loss of coverage.
As underwriters evaluate risks individually, shipowners are left to assess their options regarding transiting this critical maritime corridor. With the operational risks shifting rapidly, the availability of war-risk insurance may ultimately influence when shipping operations can safely resume through the region. IUMI cautioned that current conditions could disrupt global supply chains, as vessels re-route to avoid high-risk areas while waiting for improved security stability.
