Ship insurers set for major claims from Iran War, Allianz says

THE INSURANCE industry is set to face significant claims for ships that were damaged during the Iran war, according to German insurer Allianz. 

The company said in its annual safety and shipping review that it had already received such claims stemming from the conflict, some of which could include total losses of vessels. The report didn’t give a value of the potential hit, though it estimated that vessels and cargo with a combined value of US$125 billion were trapped in the Persian Gulf as of Jun 15. 

Insurance premiums in the niche corner of the insurance market that protects vessels against war risks surged as a result of the conflict.

While that can mean some vessels are paying more than a million dollars a voyage to enter or exit the Strait of Hormuz, those revenues take a hit when there are a significant number of incidents. In the earliest days of the war, there were attacks on ships almost every day.

“Clearly, loss of life and property damage – in terms of both vessels and their cargo – are the main causes to date,” said Regis Broudin, global head of marine claims at Allianz Commercial. 

The vessels impacted by the claims include container ships, bulk carriers and oil tankers that were hit by drones and missiles, according to the report. BLOOMBERG