Marine insurers have begun shifting war-risk insurance for vessels operating in the Persian Gulf and nearby waters to single-voyage coverage, as escalating tensions involving Iran sharply increase risks for commercial shipping.
Several major Protection and Indemnity (P&I) clubs and reinsurers have either cancelled existing war-risk policies or tightened underwriting rules for ships entering Iranian waters, the Strait of Hormuz and adjacent Gulf areas. The cancellations, issued with short notice, mean shipowners must now negotiate voyage-by-voyage insurance at significantly higher premiums before entering the region.
Under the new arrangements, coverage can still be obtained but only with specific approval for each voyage, reflecting the heightened geopolitical uncertainty and growing exposure for insurers. Industry sources say reinsurers are reducing capacity, forcing insurers to limit coverage or reprice risk for each transit through the Gulf.
Premiums for hull war-risk insurance have surged dramatically, in some cases rising from around 0.25% of a vessel’s value to as high as 3%, meaning ships valued at $200–300 million could face millions of dollars in insurance costs per voyage. The spike reflects missile and drone threats to vessels and increasing security concerns across the Strait of Hormuz, one of the world’s most critical maritime chokepoints.
The insurance tightening is already affecting shipping activity, with many tanker and container operators delaying voyages, rerouting cargo or reassessing Gulf calls. Analysts warn that sustained insurance restrictions could disrupt global energy flows and increase freight costs for trade moving through the region.
If the conflict persists, industry experts expect war-risk premiums and operational restrictions to remain volatile, adding further pressure on shipping markets and global supply chains.