IUMI analyzes security situation in the Middle East

The International Union of Marine Insurance (IUMI) published its observations on the current security situation in the Middle East, particularly in the Persian Gulf and the Red Sea, last Wednesday. According to the IUMI, the safety of shipping and seafarers is the top priority for owners. The situation in the region remains tense, as many operators are forced to change their routes to avoid high-risk areas.

The IUMI points out that these developments could have potential impacts on supply chains. In particular, there could be disruptions in nearby ports, affecting both ships and crews on longer sea routes. Insurers are aware of the challenges arising from this situation and, according to the IUMI, will adjust their strategies accordingly.

War risk and insurance conditions

The provision of war risk coverage for ships in the Persian Gulf and the Red Sea is granted by the IUMI based on specific agreements that apply to individual voyages. This coverage is only provided if navigation is approved by the relevant governments and flag states. Given the rapidly changing situation, insurers will regularly review their willingness to provide this coverage. In some cases, according to the Union, insurers may cancel coverage to reassess the risk. However, such a cancellation does not necessarily mean the end of insurance coverage.

The IUMI emphasizes that members predominantly offer hull, machinery, and cargo insurance. Liability insurance is typically covered by protection and indemnity clubs, which often operate under the umbrella of the International Group of P&I Clubs.

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