Yemen: Insurance companies exclude war risks in marine insurance policies
Source: Middle East Insurance Review | Dec 2023
Several insurers are excluding war risk in marine insurance policies involving Yemen, after the Houthis who control parts of the country announced on 31 October that they would join the Israel-Palestine war.
Tension has escalated after the Houthis threatened to target Israeli shipping. They followed up on their threats with the seizure of a cargo ship on 19 November. The vessel, Galaxy Leader, is said to be partly Israeli-owned.
Al-Mohandes Insurance marine insurance general manager Sherif Mohsen told Al Mal News that the Houthis waging war against Israel and their threat to strike Israeli-related ships in the Red Sea region affects cargo insurance for goods passing through Yemeni ports.
He said that the Bahrain-based Arab War Risks Insurance Syndicate (AWRIS) covers war risks in the region, in addition to the Lloyd’s Market in London.
He said that AWRIS aims to protect the interests of Arab insurance markets, by covering war risks for the two branches of marine insurance, namely, cargo and ship hull.
He said that reinsurers would be consulted when covering marine insurance risks on shipments of goods passing through Yemeni ports, noting that coverage prices are expected to double due to the risk. He said that reinsurers are monitoring the launching of missiles from Yemen against Israel and that they will take this peril into account when setting the terms and prices of insurance for goods that head for or come from Sanaa.
Apex Egypt reinsurance brokerage managing director Khaled Sayed said that the Lloyd’s market is expected to raise war insurance prices by 100-300% for goods passing through Yemeni coasts or ports. M