Damascus, March 9 (SANA) The ongoing war between the United States and Israel on one side and Iran on the other has cast a direct shadow over the global maritime insurance sector, particularly war-risk coverage, as the Arabian Gulf and the Strait of Hormuz have effectively turned into an active military theatre, exposing vessels and cargo to escalating threats.
Several insurance bodies and companies have taken what industry observers described as an unprecedented step by issuing notices canceling war-risk coverage for ships transiting the Gulf and the Strait. Among the most prominent are Norway’s Skuld marine insurer and the Arab War Risks Insurance Syndicate (AWRIS).
Industry experts anticipate that premiums for vessels operating in the region could rise by 25% to 50%, with Stephen Rodman, Head of Marine Affairs at Aon Global, noting that the market reacted swiftly due to the likelihood of substantial losses should multiple vessels sustain damage in the same area. He added that further price adjustments remain possible if military tensions intensify.
A report published by Forbes Middle East estimated potential losses to the shipping industry at $1.75 billion should at least seven vessels be damaged. War-risk premiums could surge to $7.5 million, compared to $625,000 before the conflict.
Angus Blainey, Marine Division Director at Gallagher, told Reuters that daily price increases have been recorded depending on vessel type and ownership, noting that ships flying certain flags may face higher premiums.
Data from Vortexa indicates that more than 20 million barrels of crude oil pass through the Strait of Hormuz each day, representing roughly one-fifth of global oil consumption.
In parallel, Sheila Cameron, CEO of the Lloyd’s Market Association, confirmed that nearly 1,000 vessels, half of them oil and gas tankers valued collectively at around $25 billion, remain insured at present.
Seeking to mitigate the conflict’s impact on global oil prices, U.S. President Donald Trump announced the possibility of deploying the U.S. Navy to escort oil tankers through the Strait of Hormuz. He also instructed the U.S. International Development Finance Corporation to provide political-risk insurance and financial guarantees for maritime shipments in the Gulf.
Overall, maritime insurance providers stress the need for enhanced protective measures, closer coordination between insurers, governments, and maritime authorities, and continuous risk assessment to safeguard vessels and cargo amid the ongoing military escalation.
MHD
