MARKET STRUCTURE · COMPETITIVE · MIDDLE EAST
ICICI Lombard hikes war-risk premium for Gulf-linked cargo
Change
ICICI Lombard introduced a war-risk premium of about 0.25% on cargo linked to Gulf countries and directed teams to map shipments transiting the Persian Gulf, Strait of Hormuz and the Red Sea to assess exposure.
Why it matters
The 0.25% war-risk premium applies to cargo involving Gulf countries and is charged alongside applicable taxes and stamp duty. The rate applies across marine annual policies, single-transit covers and marine certificate products covering cargo linked to Gulf ports. Premiums for shipments passing through the Red Sea remain unchanged for now. Teams are collecting shipment-level data—policy numbers, ports of loading and discharge, vessel details, cargo value and vessel location—to map exposure under coverage for war and related perils such as strikes, riots and civil commotion.
Implications
- • Gulf-linked shipments incur higher insurance costs equal to a 0.25% war-risk premium plus applicable taxes and stamp duty on affected marine products.
- • Insurer underwriting and risk teams must aggregate and analyze shipment- and policy-level data to quantify exposure to war-related perils.
- • Claims handling remains subject to existing marine policy terms, sanctions and standard war-related exclusions.
Who is affected
- • Marine underwriters and insurer risk teams
- • Cargo owners and shippers with Gulf-linked shipments
- • Freight forwarders and brokers arranging Gulf transits
- • Claims and compliance teams
Source
Topics
Business & Markets Supply Chain & Logistics Finance & Banking Insurance