According to Reuters, many smaller insurers are becoming reluctant to offer war coverage, with some refusing to underwrite these policies altogether.
Louise Nevill, UK CEO of marine, cargo, and logistics at broker Marsh, highlighted the growing hesitancy among insurers, while David Smith, head of marine at McGill and Partners, noted this is the first time he has seen underwriters declining coverage entirely.
At the International Union of Marine Insurance (IUMI)’s annual conference in Berlin, Ilias Tsakiris, General Manager of American Club Europe, emphasized that geopolitical tensions, particularly around the Red Sea, are leading underwriters to be more cautious with vessels connected to high-risk regions.
He also pointed out that sanctions and global political strains have made insuring vessels tied to countries like the US, UK, and Israel more complex.