IUMI monitors marine insurance risks in the Persian Gulf and Red Sea
The International Union of Marine Insurance says the marine insurance sector is closely monitoring the security situation in the Middle East. Insurers are particularly focused on the safety of shipping in the Persian Gulf and the Red Sea.
IUMI stressed that the safety of seafarers remains the top priority for shipowners and the wider maritime industry.
The situation remains fluid. Several vessels are currently trapped in the Persian Gulf, while many operators are rerouting ships to avoid high-risk areas. These diversions may increase congestion at nearby ports and force vessels to take longer sea routes.
Insurers warn that these changes could disrupt global supply chains in the short term.
Despite the rising risks, war risk insurance coverage for voyages through the Persian Gulf and Red Sea remains available. Insurers can still grant cover on a single-voyage basis, provided navigation in the area is authorised by governments and flag states.
However, insurers will continue to review the situation closely. They may reassess their ability and willingness to provide cover as conditions evolve.
In some cases, insurers may issue a Notice of Cancellation on existing war risk cover. This allows them to reassess the risk and potentially reinstate coverage under revised terms. A cancellation notice does not automatically mean coverage ends, and war risk insurance may still be available.
IUMI also clarified the structure of marine insurance. Most IUMI members provide property insurance, including hull, machinery and cargo coverage. Liability risks are usually covered by Protection and Indemnity clubs operating within the International Group of P&I Clubs.
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