LONDON, Feb 11 (Reuters): War underwriters have raised the premiums they charge to US, British and Israeli firms by as high as 50 per cent for ships transiting the Red Sea and some providers are avoiding such business due to targeting of the vessels by Yemen's Houthis, sources said.
Attacks by the Iran-aligned Houthis since November have slowed trade between Asia and Europe and alarmed major powers. The Houthis say they are acting in solidarity with Palestinians as Israel's war against Hamas militants in Gaza grinds on.
Many companies have opted to re-route ships around southern Africa although some vessels are still sailing via the Red Sea.
Ships with a link to the US, Britain or Israel are now paying 25-50 per cent more in war risk premium than other ships to navigate the Red Sea, said David Smith, head of hull and marine liabilities at insurance broker McGill and Partners.
Two insurance industry sources said ships with US, UK or Israeli links would be quoted a higher rate, even above 50 per cent.
"The ships that have so far had problems, almost all of them have got some element of Israeli or US or UK ownership in there somewhere," said Marcus Baker, global head of marine and cargo with insurance broker Marsh.
Baker said there was "exclusionary language" being introduced for cover involving UK, US and Israeli interests.
US, UK ship investors hit by soaring Red Sea insurance
FE Team | Published: February 12, 2024 00:38:58
US, UK ship investors hit by soaring Red Sea insurance
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