Many of the world's leading maritime insurers have cancelled war risk cover for vessels entering the Persian Gulf, amid escalated military conflict in the Middle East.
The US and Israel are engaged in strikes on Iranian targets, while Iran is retaliating with missile and drone attacks on US bases in five GCC states.
According to a Bloomberg report, more than half of the 12-member International Group of Protection and Indemnity Clubs (IG) have issued notices stating that, effective midnight London time on 5 March, war risk insurance will automatically terminate for ships entering the Persian Gulf, adjoining waters and Iranian territorial zones.
Among the IG members, global marine insurance provider Assuranceforeningen Skuld (Gjensidig) [Skuld] has issued its assureds a notice of cancellation of the War Risk Cover.
In a circular to fixed premium assureds where cover is extended to include war risks, Mr Ståle Hansen, Skuld’s President and CEO, said that it is following closely the developments in Iran and the wider Arabian/Persian Gulf, which have resulted in a materially heightened level of geopolitical and operational uncertainty.
The Skuld circular also said, “It is already evident that reinsurers’ appetite for war-risk exposure is tightening, and in practical terms, it will result in reinsurers withdrawing capacity at short notice.”
The circular constitutes notice of cancellation to the War Risk Cover for owners’ fixed P&I, charterers, offshore, yachts, yacht crew liability, and optional covers.
The cancellation will take effect on 5 March, 72 hours after 00:00 hrs GMT (Midnight) on the day Notice was given, which was 1 March 2026. The War Risk cover for Assured(s) will be terminated automatically for the Assured(s) trading or being within:
GIC Re
Separately, General Insurance Corporation of India (GIC Re) said it will stop covering hull war risks in marine hull policies in several high-risk global regions effective from late 1 March 2026.
In a notice, the reinsurer said, “This Notice of Cancellation shall be effective from 1900 hrs on 01.03.2026 and GIC Re will cease to cover the Marine Hull War risks from 1900 hrs on 03.03.2026.”
This applies to vessels in the high-risk zone, including Pakistan waters; the Persian or Arabian Gulf and adjacent waters or ports (including the Gulf of Oman); Iran and all other countries under sanctions by the UN, UK, US or EU; specific zones of the Sea of Azov and Black Sea; and waters of Ukraine, Russia or Belarus. It also termed certain areas of the Indian Ocean, the Gulf of Aden and the southern Red Sea as high-risk zones.