Marine insurers in London are experiencing a noticeable decline in inquiries for war-risk coverage for vessels planning to transit the Strait of Hormuz, a key shipping chokepoint, as geopolitical tensions escalate again in the Middle East.
Brokers and underwriters report that fewer shipowners are even seeking quotes, reflecting heightened caution despite ongoing negotiations after a ceasefire between the United States and Iran faltered. Visible shipping traffic through the waterway has nearly halted, with some vessels turning off transponders or reconsidering their plans altogether.
Although war-risk insurance premiums remain high, some owners are still interested in coverage, even as market hesitancy grows. Premiums—already elevated well above pre-conflict norms—have risen sharply, with costs sometimes reaching 2%–6% of a vessel’s value, compared with fractions of a percent before.
Industry experts note that unless a durable peace agreement is secured, this volatility in demand and pricing is likely to continue, with implications for global trade routes, insurance risk modelling, and marine underwriting strategies.
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