The size of Korea's exposure to marine insurance risk has been estimated at around KRW1.7tn ($1.14tn), according to data submitted by the Financial Supervisory Service (FSS) to a legislator, amidst concern arising from the closure of the Strait of Hormuz as a result of the Middle East war.
Domestic insurers' retained amount in marine insurance totalled KRW1,686.3bn across 10 insurers and two reinsurers as of 9 March 2026. Of that, primary insurers held KRW1,461.9bn and reinsurers KRW224.4bn, reported Chosun Business, citing the data supplied to Kang Min-kuk of the People Power Party.
The FSS asked major domestic non-life insurers to assess marine risk exposure and adequacy of war protection.
“We understand that most Korean insurers have secured reinsurance coverage that incorporates war-risk provisions,” an FSS official told The Korea Times.
Premium rates in the war risk policy terms applied to vessels staying in Middle Eastern waters due to the closure of the Strait have surged. Hull insurance premium rates, typically around 0.25%, have reportedly risen to 1% to 3% since the war.