Marine insurers adapt to rising threats in the Persian Gulf as vessel attacks increase and trade routes face significant disruptions.
Marine insurers are seeking ways to support trade in the Persian Gulf as threats evolve from past tanker war tactics to drones and missiles, reports S&P Global.
Since the US-Iran war began on February 28, more than 10 ships have been attacked in the Strait of Hormuz and nearby waters, causing casualties and damage. International shipping bodies have urged companies to avoid conflict zones.
Munro Anderson of Vessel Protect stated that the situation is unprecedented and not a repeat of the 1980s tanker wars. He noted that insurers remain committed to finding mechanisms to support commercial trade despite the risks.
The Shipowners' Club has announced it is ready to reoffer war cover up to US$25 million. AIS data showed that only five vessels transited Hormuz on March 5, down from eight the day before, compared with a normal average of 135 daily.
The disruption has led to increased freight costs. The Platts VLCC index for non-scrubber, non-eco vessels reached $471,158 per day on March 6, up 127 percent from February 27.
The US has pledged to backstop war-risk insurance and provide naval escorts; however, analysts indicate that Iran's military capability remains the main deterrent. The Joint Maritime Information Centre has warned of sabotage threats in northern Gulf waters.
China, Iran's largest trading partner, has signaled it will only resume normal cargo operations with insurance and navy escorts. Chinese imports from the Middle East accounted for 55 percent of crude and 50 percent of LPG in 2025.
Tom Wilson of Tysers Insurance Brokers mentioned that shipowners are unlikely to resume voyages through high-risk areas until hostilities ease, citing concerns for both vessels and crews.
