The conflict in the Middle East has led many insurance underwriters in the maritime shipping market to avoid offering coverage in the region to any U.S., Israel, or U.K.-linked vessels.
“Many underwriters are not touching vessels with perceived U.S., U.K. or Israeli links at any price,” said David Osler, insurance editor for Lloyd’s List.
According to insurance broker Marsh McLennan, rates among insurance companies that are offering coverage to vessels are now ranging between 0.25%-0.45% of ship value, up from 0.125% a few weeks ago.
These rates were consistent over the previous week, but after the U.S. strikes over the weekend on Iran nuclear sites, Middle East marine war risk rates “hardened significantly,” according to Osler.
By the end of the day on Monday, pricing had risen to as high as 0.5%, and was even higher for U.S.-affiliated ships.
