Several marine insurance companies have been notified by their reinsurers about the cancellation of war risk coverage in the Indian Ocean, Gulf of Aden, and Red Sea due to increasing security concerns and a rise in vessel attacks in these regions. The geopolitical climate in the Red Sea has intensified, leading to operational uncertainties in maritime activities.
In response to these developments, Skuld has received a cancellation notice regarding certain commercially reinsured war risks, prompting the organization to inform its assureds. On August 12, multiple marine insurers, excluding Skuld and West of England P&I, issued similar cancellation notices. Skuld’s circular specified that the cancellation will take effect from 00:01 GMT on August 16, 2026, replacing any previously agreed terms related to war risks.
The cancellation specifically pertains to war risk coverage, while other terms of insurance will remain unchanged. It will affect assureds operating in the specified waters, including those trading to, from, or within the territorial waters of the Indian Ocean, Gulf of Aden, and Red Sea. The defined boundaries include various geographical coordinates, with exceptions for coastal waters up to 12 nautical miles offshore.
West of England P&I has also received a notice of cancellation from its reinsurers, which will apply to war risk liabilities in the same areas. This updated exclusion will take effect from 00:01 GMT on August 16, 2026, impacting various non-mutual business lines, including charterer’s liability and fixed premium P&I coverage. The specific boundaries for exclusion remain consistent with those outlined by Skuld, with similar exceptions for certain coastal waters.
