Quills and conflict: How protection in the Strait of Hormuz is bought and sold
- Following renewed strikes across the Middle East this week, David Smith, head of marine at London broker McGill and Partners, noted war risk premiums for Strait of Hormuz transit soared to 10% of a vessel's value from roughly 0.25% before the conflict.
- Underwriters now price policies just six hours before voyages, down from the usual 24-48 hours, to track geopolitical changes; policies remain valid for only three to seven days before requiring renegotiation.
- Insurer Allianz reported last month that around 1,150 cargo-carrying vessels with an estimated value of $125 billion remain stranded in the Persian Gulf, with many potentially becoming "total losses" if conflict continues.
- To mitigate risk, some underwriters offer "no-claims bonuses," returning half the premium if vessels pass safely; Marcus Baker, global head of marine and cargo for insurance broker Marsh, noted that on a $100 million oil tanker, "that's a $10 million voyage."
- Western insurers will refuse to cover ships paying tolls to sanctioned Iranian institutions, as insurance rates remain unlikely to return to pre-war levels, said Ben Stone, head of marine hull at insurance broker Aon.
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14 Articles
By Hanna Ziady, CNN Inside a futuristic building in central London, leather bound volumes contain pen and ink written records of ships lost at sea during the last 250 years. An entry into one of the hundreds of these “Loss Books” details the sinking of The Post Feathers and Conflicts: how protection is purchased and sold in the Strait of Ormuz appeared first on KVIA.
Quills and conflict: How protection in the Strait of Hormuz is bought and sold
Inside a futuristic building in central London, leather-bound tomes contain quill-and-ink records of vessels lost at sea over the past 250 years. An entry in one of hundreds of such “Loss Books” details the demise of the Titanic in April 1912. More than 100 years later, entries are still handwritten using a quill pen by staff known as “waiters.”
Quills & Conflict: How Lloyd's Sells Hormuz Strait Protection
Inside a futuristic building in central London, leather-bound tomes contain quill-and-ink records of vessels lost at sea over the past 250 years. Entries are still handwritten using a quill pen by sta
Securers follow what's going on almost hour by hour and there's even an extreme case that's been solved in six minutes.
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