Economy
Insurance

Red Sea crisis: Why insurers find pricing in marine risk a hard row to hoe.

Red Sea crisis: Why insurers find pricing in marine risk a hard row to hoe.
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Yemen's Houthi fighters' takeover of the Galaxy Leader Cargo in the Red Sea coast off Hudaydah, on November 20, 2023 in the Red Sea, Yemen

Synopsis

When the probability of risk is high, insurers may not issue new policies as part of prudent underwriting norms. However, under the current situation, factoring in contingencies into premiums is a major challenge for insurance companies.

By
5 mins read, Last Updated:
As the Red Sea crisis continues, bringing back the memories of 2021 when the Suez Canal was blocked for days after a container vessel ran aground, shipping companies across the globe are once again grappling with soaring costs. Premiums for marine insurance, which covers risks associated with the transportation of goods through the seas or other navigable waters, have shot up as tensions continue to brew over the vital shipping lane that carries
( Originally published on Jan 25, 2024 )

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