The security situation in the Strait of Hormuz has worsened as Iran imposes new insurance requirements for commercial vessels amidst threats of force. INTERTANKO’s managing director criticized the chaos stemming from Iranian military warnings and emphasized that these insurance stipulations act as an indirect toll, raising concerns about international maritime law compliance.
Iran has launched “Hormuz Safe,” a digital insurance platform for vessels in the Strait of Hormuz, allowing cryptocurrency payments amid global banking restrictions. War-risk insurance costs have surged, with premiums rising dramatically. Traditional payments face sanctions, making crypto a viable option, while the U.S. proposes a reinsurance facility for shipping risks.
India is establishing an insurance safety net to protect its trade amidst rising geopolitical uncertainties impacting maritime routes. With global insurers tightening coverage and elevating premiums, this initiative aims to secure shipping interests and ensure uninterrupted imports and exports, particularly in high-risk areas like the Gulf region and the Red Sea.
The Nord Stream gas pipelines were damaged in 2022 amid Russia’s invasion of Ukraine. The Nord Stream company is suing Lloyd’s and Arch Insurance for nearly 580 million euros following September explosions that disrupted gas supplies. Insurers claim damages from war are excluded, while the trial will investigate links to the conflict.
India is accelerating plans to establish its own Protection and Indemnity (P&I) insurance entity amid soaring marine insurance costs due to recent crises in West Asia. Rajesh Kumar Sinha announced ongoing discussions with the Department of Financial Services, highlighting the aim to create a domestic solution for maritime liability coverage.
Shipping insurance rates for vessels in the Black Sea have surged over threefold due to recent Ukrainian attacks on Russian-linked ships. Previously ranging from 0.25% to 0.3% of a vessel’s value, rates have escalated to 1% for certain ports. The heightened risks have prompted underwriters to revise their assessment significantly.
NorthStandard has announced a 5% increase in Protection and Indemnity premiums for the marine insurance year starting February 20, 2026. This decision reflects current market unpredictability. The company projects premium income to rise to $930 million, supported by improved investment returns and a focus on diversification. Despite positive forecasts, geopolitical risks persist.
The Maritime Industry Authority (MARINA) has reinstated its insurance requirement for maritime operators to cover liabilities from sea accidents. This decision highlights the necessity of financial protection in the sector, aiming to enhance accountability and safety standards. By mandating insurance, MARINA seeks to mitigate financial burdens from maritime incidents.
India has authorized three Russian insurers, including Sberbank’s insurance unit, to provide marine coverage for ships at its ports. This decision supports Moscow’s oil supplies to India, its largest seaborne oil market after China. The permits for these insurers are valid until February 20, 2026, despite ongoing sanctions.
The surge in insurance costs for vessels passing through the Red Sea since early September is due to heightened risks of attacks by Yemen’s Houthis. This has led to insurers suspending coverage and increasing war risk premiums to as much as two percent of a ship’s value. Challenges for ships seeking coverage in the region are on the rise.
