Marine insurer Skuld has cancelled certain war risk coverage for parts of the Red Sea, Gulf of Aden and Indian Ocean, citing escalating security concerns in the region, according to Ship & Bunker.
The cancellation takes effect 72 hours after 00:01 GMT on August 16, Skuld said in an emailed update on Wednesday, as reported by Ship & Bunker.
Reinsurers Cite Rising Uncertainty
According to Ship & Bunker, Skuld stated that “in light of concerning developments in the Red Sea area, which have materially increased geopolitical and operational uncertainty, the Association has received a notice of cancellation from its reinsurers in respect of certain commercially reinsured war risks.” The insurer added that this made it “necessary for the Association to issue a corresponding Notice to Assureds.”
The move follows an attack on the cargo ship Tihamah off the coast of Yemen, which Ship & Bunker reports was struck by Houthi forces, resulting in the deaths of four crew members.
Scope of the Cancellation
According to Ship & Bunker, the notice applies specifically to certain fixed-premium assureds, including owners, charterers, and offshore and yacht risks. Skuld clarified that the cancellation does not extend to mutual P&I, FD&D, or Excess War Risks cover, the report states.
Ship & Bunker also notes that Skuld is finalizing a buy-back option, which would give affected assureds the ability to reinstate the war-risk cover that has been cancelled.
Does This Matter to You?
This development is directly relevant to vessel owners, charterers, and operators transiting or planning voyages through the Red Sea, Gulf of Aden, and Indian Ocean, particularly those holding fixed-premium war risk policies with Skuld. A gap in reinsurance-backed war risk cover in these waters could affect voyage planning, insurance costs, and risk exposure for ships operating in or near the affected zones.
Bunker traders and port planners monitoring Red Sea transit patterns may also find this significant, as insurance market shifts often correlate with broader changes in shipping routes and regional demand, a dynamic separately highlighted in related Ship & Bunker coverage on bunker supply pressures tied to Red Sea diversions.
The source material does not specify how many vessels or fleets are affected by Skuld’s cancellation, nor does it detail the cost or terms of the forthcoming buy-back option.
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
