Red Sea Shipping Concerns Raises Rates

Due to a rise in attacks by Yemen’s Iran-aligned Houthis in the Red Sea, the cost of insuring cargo ships in the region has skyrocketed. To address this challenge, UK-based insurance broker Howden launched a new type of insurance specifically designed to protect cargo vessels from drone and missile attacks. This “first dedicated insurance coverage of its kind” covers ships sailing through the Red Sea, Bab al-Mandab Strait, and the Indian Ocean for a 12-month term with $50 million coverage per vessel. The competitive rates aim to attract clients who may have lost previous war coverage. Howden anticipates similar insurance needs arising in the Persian Gulf due to potential restrictions on Iran’s shipping in the Strait of Hormuz. These developments highlight the growing security concerns impacting global shipping.

Read more at: https://www.reuters.com/business/finance/broker-howden-launches-red-sea-cargo-war-insurance-ship-risks-surge-2024-04-16/