War insurance may attract more funds despite heightened risk, says underwriter

THE appetite for insurance that provides cover against damage resulting from acts of war or terrorism could grow bigger amid rising geopolitical tensions because people see money to be made in this insurance segment, an experienced underwriter has said.

But Chris Lambe, a senior underwriter at Gard, said insurance brokers might have difficulty picking the right insurer for “war insurance” because of a mushrooming of choices in this insurance segment. Gard says it insures around half the global merchant fleet.

Speaking on Thursday (Apr 18) at a panel discussion at the Marine Insurance Asia conference held as part of Singapore Maritime Week, he was answering a question on whether the war insurance sector would diminish following the sinking of bulk carrier Rubymar, which was attacked by Yemen’s Houthi rebels in the Red Sea in February.