Shipowners are pulling back from Strait of Hormuz voyages as marine war-risk insurance rates reach as much as 6% of vessel value and demand for cover declines, according to WTW and Marsh.
Two marine war-risk brokers and two underwriters have seen requests for quotations fall since the breakdown of an interim ceasefire, although insurers continue to offer cover to vessels prepared to transit the waterway.
Simon Lockwood, head of shipowners for Marine GB at WTW, said owners’ reluctance to commit vessels to Hormuz passages had reduced quote requests, while inquiries were continuing and capacity remained available.
Marcus Baker, global head of marine at Marsh, put rates at between 2% and 6% of insured vessel value, compared with a fraction of a percentage point before the crisis.
At the top of the range, cover for a $100m tanker would carry a headline cost of $6m, although no-claim discounts can substantially reduce the final premium. Some vessels were charged as much as 10% of their value at the height of the crisis.
Rates had started to fall below 2% before the latest attacks. “This roller coaster is unlikely to abate until a true and lasting ceasefire is maintained,” Baker said.
Other insurance market participants placed Gulf war-risk rates at about 3% of vessel value, up from roughly 2% at the end of the previous week.
Cover is generally issued for seven days and can be reviewed every 24 to 48 hours. The market remains open, but some underwriters have advised shipping companies to pause Hormuz voyages, while others have reviewed policy conditions following renewed attacks on commercial vessels.
WTW, formally Willis Towers Watson, is an advisory, insurance-broking and risk-solutions group operating in more than 140 countries and markets. It recorded revenue of $9.71bn in 2025.
Marsh Risk is the insurance-broking and risk-management business of Marsh. It has more than 45,000 employees and offices in over 130 countries.