The world’s largest maritime insurance mutuals will withdraw war-risk insurance for ships entering the Persian Gulf from March 5, escalating pressure on global shipping as conflict in the region intensifies. Seven members of the International Group of Protection and Indemnity (P&I) Clubs – which insure about 90% of global ocean-going tonnage – will automatically terminate war-risk coverage for vessels entering the Persian Gulf and adjacent waters. The move follows similar cancellations by reinsurers, prompting insurers to reassess their exposure. The withdrawal is expected to discourage shipowners from loading cargoes in the region, which supplies roughly 20% of the world’s crude oil and is a major exporter of refined fuels and liquefied natural gas. While alternative coverage remains available, market participants report premiums have surged by 25% to 50%, and in some cases doubled. Japanese insurers have also reduced or suspended war-risk coverage in nearby waters, reflecting broader industry caution. Analysts warn that further escalation, particularly any direct attacks on merchant vessels, could drive insurance costs significantly higher and disrupt global energy and trade flows.
