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Insurers are beginning to refuse U.S., UK and Israeli carriers cover for their vessels transiting the Red Sea – and alternative routings also risk heightened premiums.
War-risk premiums have surged since Iran-backed Houthi militia began attacking vessels in the region in mid-November.
The global head of marine, cargo and logistics at Marsh, Marcus Baker, told CNN the market was “clearly tightening,” with some insurers “no longer willing to underwrite war-risk insurance for vessels with ownership or involvement with the U.S., UK or Israel travelling through the Red Sea.”
However, chief insurance officer of insurer Breeze Patrizia Kern said she was not aware of insurance companies actually withdrawing cover for sailings via the Red Sea, but said she expected higher premiums, particularly amid indications that efforts to deter the Houthi attacks had failed.
Read more in an article from The Loadstar.