News ME Conflict25 Jun 2026

ME conflict:Insurers count cost of damage and trapping risks

| 25 Jun 2026

The conflict in the Middle East and the blocking of the Strait of Hormuz have resulted in significant damage to vessels, cargo and port infrastructure in the region, says Allianz Commercial.

In its report, titled “Safety and Shipping Review 2026”, Allianz Commercial said that according to the International Maritime Organization, 46 merchant vessels (as of 11 June 2026) had been damaged in the conflict, of which a number were detained, abandoned or sunk.

Claims

Allianz has received claims notifications resulting from the conflict, some of which are significant (and potential total losses), according to Mr Régis Broudin, Global Head of Marine Claims, Allianz Commercial.

Clearly, loss of life and property damage – in terms of both vessels and their cargo – are the main causes to date. Further claims related to the trapping of vessels in the Persian Gulf are to be anticipated where cargo damage results from vessels trapped at sea for long periods. The costs associated with delay to cargo, however, are typically not covered by insurance.”

Insurers face significant claims under marine coverages for damage to a wide range of vessels –including container ships, oil tankers and bulk carriers– from missiles and drones in the region, as well as related damage to cargo.

Insurance available

The marine insurance industry has proven resilient throughout the crisis, supporting the shipping industry with continuity of insurance cover, albeit at increased hull and cargo premiums.

Insurance continued to be available,” said Mr Broudin. “However, under the principles of insurance, the cost of cover is proportional to the risks. The fact that insurance is still available is commendable. But for shipowners the issue is more about the risk to the crew and the vessel of transiting a conflict zone,than insurance.”

Allianz Commercial said, “Once the Strait of Hormuz reopens properly, it is critical that its status is robust in terms of safety and political stability. War insurance rates will always depend on the level of security and risk.”

As of 15 June 2026, Allianz Commercial calculates that around 1,150 cargo-carrying vessels (over 100GT) with a total volume of 29mGT were operating within Persian Gulf waters, representing an estimated combined vessel and cargo value in the range of $125bn. This underlines the geopolitical and economic relevance of maritime chokepoints for the shipping industry and global trade.

| Print
CAPTCHA image
Enter the code shown above in the box below.

Note that your comment may be edited or removed in the future, and that your comment may appear alongside the original article on websites other than this one.

 

Recent Comments

There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.