Track War Risk Insurance News

War risk insurance premiums for vessels transiting the Persian Gulf and Strait of Hormuz have exploded to extraordinary levels, effectively pricing most commercial shipping out of the region. Before the conflict, war risk premiums for Gulf transit were typically 0.01-0.05% of hull value. They have now surged to 1-5% or more — a 50-100x increase — adding millions of dollars per voyage for large tankers. Some insurers have stopped writing Gulf coverage entirely, while Lloyd's of London has designated the entire Persian Gulf as a war risk zone. These premium spikes cascade through the global economy: they're embedded in oil prices, LNG costs, container shipping rates, and ultimately consumer goods prices. The insurance market is also a leading indicator — when premiums fall, it signals that underwriters believe the conflict is de-escalating, often before political announcements confirm it.