• GL
Choose your location?
  • Global Global
  • Australia
  • France
  • Germany
  • Ireland
  • Italy
  • Poland
  • Qatar
  • Spain
  • UAE
  • UK

Insurance implications of the latest Middle East oil tanker crisis

15 October 2019
Oil and Gas | DWF
Amidst heightened tensions in the Middle East, an Iranian oil tanker 'Sabiti ' has been damaged by what Iranian media said was a rocket attack. Whilst the explosion caused an oil spill into the Red Sea, this was brought under control, according to Iranian news agency, IRNA and the crew was reported to be safe. However, what will be the implications for the insurance industry? Jonathan Moss, Head of Marine & Trade at DWF, explores the cost to the insurance market.

Jonathan Moss said: "Marine insurance, Cargo and Hull & Machinery cover incorporating War Risks, is uncontrollably linked with geopolitical conflict. This latest incident will drive insurers to raise further War Risk insurance rates for vessels operating in the region, over and above the tenfold increase to rates since the attacks on tankers in May.  Shipping companies operating in the region will be forced to absorb these added costs with affordable insurance in this high risk zone becoming harder to find. This could lead to cost-cutting measures in other areas of maritime trade.


"The events leading to the attack in the Red Sea, off the coast of Saudi Arabia, are uncertain. There were reports that missiles struck the tanker and an accusation that Saudi Arabia had committed an act of terrorism while the vessel was carrying oil to Syria. Whether this was an act of terrorism or indeed a breach of international sanctions is of crucial significance in determining  whether and how cover might respond, if at all. What is certain, however, is that the continued instability and unpredictability in the region will have an adverse effect on sea trade, will reinforce the argument that the UK has too few naval assets to protect its interests in the area, and will add to the growing trend of increasing marine insurance premiums."

 


For more information, please contact:
Nahidur Rahman, Senior PR Manager
Tel: +44 7851 796943
Email: nahidur.rahman@dwf.law 

Alternatively, contact the DWF press office on press.office@dwf.law   

 

Further Reading

We use cookies to give you the best user experience on our website. Please let us know if you accept our use of cookies.

Manage cookies

Your Privacy

When you visit any web site, it may store or retrieve information on your browser, mostly in the form of cookies. We mainly use this information to ensure the site works as you expect it to, and to learn how we can improve the experience in the future. The information does not usually directly identify you, but it can give you a more personalised web experience.
Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change permissions. However, blocking some types of cookies may prevent certain site functionality from working as expected

Functional cookies

(Required)

These cookies let you use the website and are required for the website to function as expected.

These cookies are required

Tracking cookies

Anonymous cookies that help us understand the performance of our website and how we can improve the website experience for our users. Some of these may be set by third parties we trust, such as Google Analytics.

They may also be used to personalise your experience on our website by remembering your preferences and settings.

Marketing cookies

These cookies are used to improve and personalise your experience with our brands. We may use these cookies to show adverts for our products, or measure the performance of our adverts.