Marine insurers suspend war risk cover for Saudi-linked ships in Red Sea

LONDON, July 25 (YPA) – Major marine insurers in the Lloyd’s of London market have notified brokers that they are suspending war risk insurance coverage for Saudi-linked vessels navigating the Red Sea, including ships flying other flags or those that have previously docked at Saudi ports, the Financial Times reported.

Citing two brokers, the newspaper reported that some insurers are also preparing to cancel existing cargo insurance. It noted that Ascot and Navium have informed brokers of their intention to cancel insurance policies for a number of such vessels.

For his part, Marcus Baker, a broker at Marsh, explained that Saudi Arabia could potentially be categorized alongside high-risk countries in the region, such as “Israel”, the United States, and the United Kingdom, prompting underwriters to exercise greater caution regarding vessels associated with the Kingdom.

YPA