The size of Korea's exposure to marine insurance risk has been estimated at around KRW1.7tn ($1.14tn), according to data submitted by the Financial Supervisory Service (FSS) to a legislator, amidst concern arising from the closure of the Strait of Hormuz as a result of the Middle East war.
The marine insurance landscape is rapidly evolving in the wake of conflict in the Middle East. Also, a conflict involving Iran will have material implications for the insurance market in Singapore, given its role as a regional aviation hub and one of the world's leading maritime centres, according to Mr Nick Francis, Marine Partner at Kennedys, a global litigation and dispute resolution firm.
Chubb will serve as the lead partner for the $20bn Maritime Reinsurance plan designed to resume commercial shipping in the Gulf, the US International Development Finance Corporation (DFC) announced yesterday.
Hong Kong based marine insurers are finding increased opportunities to provide war risk cover at lower costs to shipowners from Hong Kong and Greater China.
The Arab War Risk Insurance Syndicate (AWRIS) has announced the reinstatement of Cargo War cover for shipments transiting high-risk maritime corridors, including the Strait of Hormuz, the Arab Sea, and Bab Al Mandeb.
The US International Development Finance Corporation (DFC) has announced that it would provide marine reinsurance in the Gulf region for losses of up to approximately $20bn on a rolling basis.
The insurance response to the blockage of the Strait of Hormuz in the ongoing hostilities in the Middle East has moved beyond incremental pricing, according to a brief by Dubai-based law firm Fichte & Co (Fichte).
The International Union of Marine Insurance (IUMI), whose members are national insurance and marine insurance associations, has said that the granting of war cover for the Persian Gulf and Red Sea is and will remain available under specific agreement on a single voyage basis as long as navigation is authorised by governments and flag states.
The granting of war cover for the Persian Gulf and Red Sea is and will remain available under specific agreement on a single voyage basis as long as navigation is authorised by governments and flag states, said the International Union of Marine Insurers (IUMI) in an official statement released yesterday.
The Joint War Committee (JWC), which counts syndicate members from Lloyd's in its ranks, as well as representatives from the London insurance market, has listed the waters around Bahrain, Djibouti, Kuwait, Oman and Qatar as high-risk areas, according to a JWC Circular.