Marine Insurers Reaffirm Support for Middle East Trade

The global marine insurance market continues to show resilience and is maintaining the availability of cargo, hull, liability and offshore energy cover despite increasing geopolitical tensions in the Middle East, says the International Union of Marine Insurers (IUMI).

Cargo insurers across global markets remain committed to supporting trade flows, including in high-risk areas such as the Persian Gulf and Red Sea.

Although the evolving situation in the Middle East has prompted adjustments - particularly in war risk pricing and policy structures – significant capacity is still available. Many insurers are continuing to provide cover through established mechanisms, including cancellation and reassessment provisions, allowing for flexibility as conditions change. This approach reflects a measured response to heightened risk rather than any reduction in market support, says IUMI.

Operational challenges remain significant. Shipping disruptions, including sharply reduced vessel traffic and rerouting, have increased complexity for clients. However, insurers are responding with tailored solutions and case-by-case underwriting to ensure continued protection for cargo interests.

The global hull insurance market remains outwardly stable, supported by resilient shipping demand and strong freight earnings.

Even as geopolitical tensions reshape trading patterns, particularly around key transit routes, insurers continue to provide cover, adapting terms and pricing where