Insurers pull war risk cover for Gulf waters
Several global marine insurers have announced the suspension of war risk insurance cover for vessels entering Iranian waters and the Persian Gulf from 5 March.
IMAGE: Persian Gulf region, including the Strait of Hormuz and the Gulf of Oman. Getty Images
War risk insurance provides cover for damage caused by acts of war, which are typically excluded from standard marine insurance policies. The cover includes risks such as terrorist attacks, hijacking and missile strikes.
Several members of the International Group of P&I Clubs have confirmed they will halt war risk cover for vessels operating in Iran and Iranian waters, “including coastal areas up to 12 nautical miles offshore” and the Persian Gulf, citing heightened security concerns in a critical global energy corridor.
Insurers said the affected area includes the Persian or Arabian Gulf and “adjacent waters,” defined as “the Gulf of Oman and waters west of a line drawn from Oman’s territorial limit off Cape al-Ḥadd at 22°42.5’N, 59°54.5’E northeast to the Iran–Pakistan border at 25°10.5’N, 61°37.5’E.”
Insurers taking this step include NorthStandard, the Swedish P&I Club, the American Club, Gard, the London P&I Club and the Japan P&I Club, among others.
The circulars from members state that the suspension will be effective from 5 March 2026 and will apply to war risk cover across “all charterers’ entries, fixed premium P&I entries and any owners’ or charterers’ extensions/ancillary covers."
Reduced cover could translate into lower traffic or higher premiums as insurers reassess regional risk.
By Konica Bhatt
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