News / Insurance refusal and higher premiums adds to pressure on carriers

Photo: © Igor Groshev | Dreamstime.com

Insurers are beginning to refuse US, UK and Israeli carriers cover for their vessels transiting the Red Sea – and alternative routings also risk heightened premiums.

War-risk premiums have surged since Iran-backed Houthi militia began attacking vessels in the region in mid-November; one report suggested a rise from 0.01% of vessel value in early December to 1% currently.

The global head of marine, cargo and logistics at Marsh, Marcus Baker, told CNN the market was “clearly tightening” with ...