A growing number of maritime insurers have moved to cancel certain war-risk coverage for vessels transiting parts of the Red Sea, Gulf of Aden and Indian Ocean, according to Ship & Bunker.
The outlet reports that Gard, UK P&I, London P&I and NorthStandard have all issued cancellation notices affecting specific war-risk covers in designated areas of the region. These notices follow a similar move by Skuld, which Ship & Bunker reported on the previous day, cancelling certain war-risk cover in the Red Sea area.
What The Insurers Said
According to Ship & Bunker, Gard said its cancellation notice was issued after its own reinsurers sent a cancellation notice covering certain war risks across the Indian Ocean, Gulf of Aden and Red Sea. That cancellation is set to take effect from 00:01 GMT on August 16.
UK P&I’s notice, as reported by Ship & Bunker, applies to certain war risks in the Red Sea and adjacent waters. London P&I said its reinsurers had issued a cancellation notice specifically covering certain war-risk covers for fixed-premium assureds. NorthStandard has also issued a notice affecting certain war risks in the same three areas: the Indian Ocean, Gulf of Aden and Red Sea.
Ship & Bunker notes that these cancellations apply only to specified covers and geographical areas, and do not amount to a blanket withdrawal of all insurance cover across the region.
Background
According to Ship & Bunker, tensions in the Red Sea have escalated following recent attacks on vessels by the Houthis, which appears to be the driving factor behind the wave of cancellations from insurers and their reinsurers.
Does This Matter To You?
Changes to war-risk insurance cover in the Red Sea, Gulf of Aden and Indian Ocean carry direct operational implications for vessels transiting or planning to transit these waters. Coverage gaps or altered terms from major P&I and war-risk providers can affect voyage planning, chartering decisions and cost calculations for operators moving through the affected zones.
As Ship & Bunker reports, the cancellations are limited to certain covers and specific geographic areas rather than representing a complete withdrawal of insurance across the region. Even so, any adjustment among multiple major insurers and their reinsurers within a short span signals a shifting risk assessment tied to the ongoing Houthi attacks referenced in the report. Parties with vessels scheduled to pass through these waters after the August 16 effective date cited for Gard’s cancellation may need to review their current coverage status with their respective insurers.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: Ship & Bunker
