London’s marine insurance market has expanded the section of the Red Sea it classifies as high risk following renewed Houthi attacks on commercial vessels.
The Joint War Committee moved the northern boundary of its designated risk zone further up the Red Sea in guidance issued on 29 July.
The committee comprises underwriters from Lloyd’s syndicates and representatives of London insurance companies. Shipowners and insurers closely follow its assessments when negotiating war-risk coverage and premiums.
The designation does not prevent vessels from entering the affected waters. However, insurers may demand additional coverage and charge substantially higher premiums for ships using the route.
The Houthis announced a maritime blockade of Saudi ports on 20 July and subsequently targeted two Saudi-linked vessels.
