The global marine insurance market says war risk cover for vessels transiting the Persian Gulf and Red Sea remains available despite a wave of cancellations tied to the escalating conflict in the Middle East, offering a potential — though limited — pathway for ships considering a return to the region.
In a statement released Wednesday, the International Union of Marine Insurance said insurers are continuing to provide war cover for voyages through the region on a single-voyage basis, even as underwriters reassess their exposure amid rapidly changing security conditions.
“The granting of war cover for the Persian Gulf and Red Sea is and will remain available under specific agreement on a single voyage basis as long as navigation is authorised by governments and flag states,” the organization said in a media statement issued March 5.
The update comes as the maritime industry grapples with a sharp collapse in vessel traffic through the Strait of Hormuz following missile and drone attacks on commercial shipping and a widening conflict involving the United States, Israel, and Iran.
Several members of the International Group of P&I Clubs — which collectively insure about 90% of the world’s ocean-going tonnage — issued 72-hour notices of cancellation over the weekend for certain war-risk policies covering Iranian waters and nearby Gulf areas after reinsurers withdrew capacity from the market.
Those notices, issued March 1, took effect Thursday, March 5, effectively removing automatic war-risk protection for a wide range of liabilities linked to the region and forcing shipowners to negotiate coverage voyage-by-voyage.
IUMI said such notices are a routine mechanism used by insurers when risk levels change rapidly and do not necessarily mean coverage disappears entirely.
“It is important to recognise that a Notice of Cancellation does not, necessarily, end the cover,” the organization said. “War cover remains available for owners and operators wishing to take it.”
Underwriters are now reviewing risks on a case-by-case basis as shipping companies weigh whether to send vessels through one of the world’s most important energy corridors.
The IUMI is separate from the International Group of P&I Clubs, which insures shipowners’ liability risks. The organization primarily represents insurers that provide property coverage such as hull, machinery, and cargo insurance, while the International Group’s P&I clubs collectively cover about 90% of the world’s ocean-going tonnage for liabilities including pollution, crew injury, and cargo claims.
The evolving insurance environment has emerged as one of the central factors shaping operational decisions across the shipping industry. Without war-risk cover, most commercial vessels cannot legally or contractually transit high-risk areas or call at ports in conflict zones.
Commercial shipping through the Strait of Hormuz has slowed to a near standstill as missile attacks, drone threats, and widespread electronic interference have rattled the region since U.S. and Israel strikes on Iranian targets over the weekend. While the strait technically remains open to navigation, vessel movements have collapsed as shipowners and charterers reassess the risks of transiting one of the world’s most important maritime chokepoints.
IUMI warned that the crisis is already reshaping vessel routing decisions and could disrupt global supply chains in the near term.
“The situation remains fluid with a number of vessels being trapped in the Persian Gulf and many operators re-routing their vessels to avoid the high-risk areas,” the organization said.
Insurers are also closely watching the potential for risk “accumulations” as ships gather at nearby ports and anchorages while operators wait for conditions to stabilize.
“We are likely to see disruptions to supply chains in the short-term, as a result,” IUMI said.
The insurance body noted that its members primarily provide property coverage, including hull, machinery, and cargo insurance, while liability risks are typically handled by P&I clubs operating within the International Group system.
While coverage technically remains available, underwriters said the fast-moving security situation means insurers will continue reassessing their willingness to write new policies as the conflict evolves.
“In the current fast-paced situation, insurers will regularly re-examine their ability and willingness to provide that cover,” the statement said.
The uncertainty leaves shipowners navigating a rapidly shifting risk landscape as they decide whether to resume voyages through the Gulf or continue diverting vessels away from the region. Industry analysts say the cost and availability of war-risk insurance — rather than formal navigational closures — may ultimately determine when commercial shipping begins returning to the strait.
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