Marine War Risk Premiums Rose Amid Expanded Listings
Global shippers face higher insurance costs and stricter compliance requirements after new risk zones were added.
Updated on Oct. 5, 2026 in Oil and Gas
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The Joint War Committee of the Lloyd's Market Association has expanded its marine war-risk listed areas to include the Black Sea, Red Sea, Persian Gulf, and Arabian Sea. These changes follow a year of increased conflict, with over 100 merchant ships attacked and 1,226 tankers now sanctioned.
Why it matters
Operators face rising logistics costs and complex liability risks as insurers respond to a volatile threat landscape. Compliance burdens have intensified, requiring operators to secure government licenses before conducting salvage or cleanup on vessels involving sanctioned parties.
Additional war risk premiums for Black Sea crude shipments reached $3.7 per barrel at their peak, while rates for transiting the Strait of Hormuz saw a 40-fold increase. Total industry losses in the Middle East are estimated at $2 billion as no-claim bonuses become increasingly rare.
The players
Joint War Committee of the Lloyd's Market Association
An industry body that sets underwriting standards and defines conflict zones for the global marine insurance market.
The details
Vessel operators must now notify underwriters before entering designated war-risk zones to maintain insurance coverage. Beyond higher premiums, the surge in sanctioned vessels complicates casualty response, as salvage operators must obtain government licenses to work on these ships. This shift forces shipping companies to balance operational speed against the need for rigorous vetting of chartered vessels and conflict-zone exposure.
Timeline
Late February marked the onset of the Iran war.
Black Sea war risk premiums peaked at $3.7 per barrel on July 29.
A total of 1,226 oil and LPG carriers were sanctioned by August 31.
Black Sea war risk premiums eased to $2.9 per barrel by September 30.
Market Landscape
The expansion of listed zones marks a departure from traditional underwriting patterns, reflecting a period of heightened geopolitical instability. This shift follows the precedents set by the Joint War Committee of the Lloyd's Market Association in managing systemic risks during active conflict.
Shipping operators and charterers should review their insurance contracts to ensure compliance with updated notification requirements. CFOs must budget for increased volatility in war-risk premiums and prepare for extended delays in salvage operations on sanctioned vessels.
The takeaway
The widening of conflict zones increases the operational cost of moving energy products globally. Operators should track their vessel's insurance status against the latest Lloyd's Market Association lists to avoid gaps in coverage during transit.
Further reading
For more on how global conflict affects energy logistics, visit the Oil and Gas section.
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