London marine insurers still offering middle east cover as war risk rates rise, gallagher says

London Marine Insurers Maintain Middle East War Risk Cover Despite Rising Rates

London Market Response to Middle East Conflict and War Risk Premiums

By Noor Zainab Hussain and Manya Saini

Rising War Risk Premiums and Market Conditions

March 4 (Reuters) - Marine insurers in the London market continue to offer cover in the Middle East, despite rising war risk premiums driven by escalating conflict in the Gulf, insurance broker Gallagher's Marine Divisional Director Angus Blayney said on Wednesday.

Rates have increased depending on vessel type, cargo and routing, Blayney said, as round-the-clock attacks by U.S. and Israeli forces on Iran, and Tehran's retaliatory missile and drone strikes, show no sign of abating.

Strategic Importance of the Strait of Hormuz

The Strait of Hormuz, a critical oil export chokepoint linking Gulf producers such as Saudi Arabia, Iran, Iraq and the United Arab Emirates to the Gulf of Oman and Arabian Sea, remains at the center of the conflict's commercial impact. Iran controls the narrow waterway.

Impact on Insurance Rates and Coverage

"Given the challenging maritime security environment, rates have increased from levels that owners and charterers will be used to," Blayney said.

"The cost will vary depending on the vessel type, cargo and routing, however marine insurers are very much continuing to provide cover and helping to ensure vital marine commerce continues uninterrupted with adequate coverage in place."

Capacity and Solutions from Lloyd's of London

Gallagher said capacity remains available through Lloyd's of London for clients seeking cover, and that in recent days it has secured marine war risk solutions for numerous existing and new clients.

Shipping Activity and Security Measures

At least 200 ships, including oil and liquefied natural gas tankers as well as cargo vessels, were at anchor in open waters off the coasts of major Gulf producers including Iraq, Saudi Arabia and Qatar, according to Reuters estimates based on ship-tracking data from MarineTraffic.

U.S. Government Involvement and Support

U.S. President Donald Trump said on Tuesday the U.S. Navy could begin escorting oil tankers through the Strait of Hormuz if necessary. He added he had ordered the U.S. International Development Finance Corporation to provide political risk insurance and financial guarantees for maritime trade in the Gulf.

(Reporting by Noor Zainab Hussain and Manya Saini in Bengaluru; Editing by Tasim Zahid)