Insurance premiums for commercial vessels transiting the Red Sea have surged sharply following renewed attacks by Yemen’s Iran‑backed Houthi militants. War‑risk liabilities have risen from approximately 0.4 % to as much as 1 % of a ship’s overall value, according to the world's largest insurance broker Marsh McLennan.
For a $100 million vessel, this increases the cost of a single voyage from around $300,000 to up to $1 million.
The uptick follows two separate assaults: the sinking of the Greek‑owned dry bulk carrier Magic Seas and an attack on the Eternity C, a Liberian‑flagged, Greek‑operated bulk vessel.
The Houthis have claimed responsibility for the first incident and have stated the attacks were in response to the vessels' alleged violations of bans on docking at Israeli ports.
Marcus Baker, global head of Marine & Cargo at Marsh McLennan, described the scale of the escalation as “stranger than I’ve seen before,” warning that if shipping continues through the corridor, premiums are “expected that these rates move further upwards”.
Marsh McLennan is a leading global professional services firm headquartered in New York, Marsh McLennan offers risk management, insurance brokerage, and consultancy across major sectors, including marine and cargo insurance. The firm monitors war‑risk exposure and sets region‑specific insurance premiums.