Due to factors such as the recent US and Israel attack on Iran and Tehran's blockade of the Strait of Hormuz, maritime shipping risks in the Middle East region have risen sharply. Major international shipping insurance markets such as London Lloyd's recently drastically raised war insurance rates for ships passing through this strait. Marcus Beck, head of Daxin Global Maritime and Freight, a mainstream international shipping insurance brokerage firm, pointed out that after the US and Israel launched an attack and Tehran closed the Strait of Hormuz, the insurance rate for ships passing through the strait had soared from 0.25% to 0.5% before the conflict broke out to 10% of the value of the ship itself. As an example, Beck emphasized that based on the calculation of an oil tanker worth 100 million US dollars, the premium expenses for a single voyage were as high as 10 million US dollars. Although the current “hull war insurance” rate, which covers hull collision losses, has dropped to a high level of 1% to 3%, the premium cost is still higher than normal. David Smith, head of the maritime business at London insurance brokerage firm McGill and Partners, said that in view of the multiple rounds of attacks in the Middle East this week, underwriters are re-scrutinizing shipping prices and individual risk factors. A large number of existing war insurance policies have been quickly cancelled and re-signed after drastically increasing premiums.

Due to factors such as the recent US and Israel attack on Iran and Tehran's blockade of the Strait of Hormuz, maritime shipping risks in the Middle East region have risen sharply. Major international shipping insurance markets such as London Lloyd's recently drastically raised war insurance rates for ships passing through this strait. Marcus Beck, head of Daxin Global Maritime and Freight, a mainstream international shipping insurance brokerage firm, pointed out that after the US and Israel launched an attack and Tehran closed the Strait of Hormuz, the insurance rate for ships passing through the strait had soared from 0.25% to 0.5% before the conflict broke out to 10% of the value of the ship itself. As an example, Beck emphasized that based on the calculation of an oil tanker worth 100 million US dollars, the premium expenses for a single voyage were as high as 10 million US dollars. Although the current “hull war insurance” rate, which covers hull collision losses, has dropped to a high level of 1% to 3%, the premium cost is still higher than normal. David Smith, head of the maritime business at London insurance brokerage firm McGill and Partners, said that in view of the multiple rounds of attacks in the Middle East this week, underwriters are re-scrutinizing shipping prices and individual risk factors. A large number of existing war insurance policies have been quickly cancelled and re-signed after drastically increasing premiums.