Maritime Insurance & Risk Premiums: Why War-Risk Insurance Has Spiked So Much More Than Physical Vessel Losses
The maritime insurance market is reacting to the current US-Israel conflict with Iran in a way that often looks shocking from the outside. The most dramatic move has not been the immediate destruction of a huge number of ships, but the sudden explosion in war-risk insurance premiums for vessels entering or operating near the Strait of Hormuz, the Persian Gulf, the Gulf of Oman, and connected danger zones. This matters because marine war-risk pricing is one of the fastest financial transmission channels through which war enters global trade.… Read more