Marine hull war underwriters are moving fast after U.S. and Israeli strikes on Iranian targets on February 28, 2026 and Tehran’s subsequent missile and drone response.
According to Dylan Mortimer, Marine Hull UK War Leader at Marsh, near-term rate increases for Gulf transits could range between 25% and 50%, assuming no direct strike on merchant shipping.
“It is very early to tell,” Mortimer said, adding that a confirmed attack on commercial vessels would carry broader consequences for war insurance pricing. He noted heightened crew concern amid the military build-up and described conditions as fluid.
Reports indicate some underwriters have invoked standard seven-day war cancellation clauses to terminate annual hull war policies.
Shipowners transiting the Gulf and the Strait of Hormuz have received cancellation notices or revised terms. Brokers told the Financial Times that war risk insurers began issuing such notices within days of escalation.
More than 200 vessels have reportedly dropped anchor in the region. The Strait of Hormuz typically handles over 14 million barrels per day. Mortimer identified vessel boarding, seizure by Iranian forces and potential closure of Hormuz as primary risk factors.
Shipping company Maersk paused sailings through Bab el-Mandeb and Hormuz. Marine insurer Skuld cancelled war risk cover and pointed to tightening reinsurance appetite for such exposure.
According to Beinsure, reinsurers often react first in war markets, pulling back aggregate limits and forcing primary underwriters to reprice or restrict capacity.
Indian reinsurer GIC Re also moved to withdraw marine hull war risk cover across several high-risk regions, citing an internal notice reported by CNBC TV 18.
Stephen Rudman, Head of Marine, Asia at Aon, said underwriters are withdrawing or revising quoted additional premiums for listed high-risk areas. Reinstatement remains available, though at materially higher rates. Some voyages now require prior approval before binding.
Iran strikes disrupt flights as war exclusions hit travel insurance cover. Airlines cancel thousands of flights after U.S.-Israel strikes on Iran, but standard travel insurance often excludes war-related disruptions.
Rudman stressed these actions apply to war risk extensions. Core hull and machinery and protection and indemnity covers remain intact unless specifically altered. The hull war segment has reacted faster than other lines due to aggregation exposure and capital sensitivity.
Additional premiums for high-risk waters continue to rise and fluctuate.
Cargo war cover remains accessible, yet pricing is tightening and quotes are assessed voyage by voyage, particularly for energy and bulk commodity shipments.
Aon does not currently see a full market withdrawal of capacity. The shift reflects repricing tied to elevated threat perception and reinsurance constraints. Rudman warned that sustained state conflict or a major vessel loss would likely trigger further rate correction.
Marine insurers cancel war risk policies in the Gulf after tanker strikes push premiums toward 1% of hull value and strand 150 vessels.
According to Beinsure analysts, rating sensitivity increases when accumulation risk combines with capital market volatility.
Morningstar DBRS said the Iran conflict adds fresh strain to marine and aviation insurers already navigating a run of geopolitical shocks. The agency expects reinsurers to react by lifting attachment points or trimming capacity, pushing more risk back onto primary carriers.
Aon advises clients to review war cancellation clauses, consult brokers before fixing voyages in exposed corridors, assess charterparty provisions governing additional premiums and incorporate volatility into freight and commercial planning. In this phase, contract language matters as much as hull value.
