Insurance

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.

The reinsurance is capped at $20 billion in covered losses in the Gulf region. Coverage is provided on a rolling basis. Initial coverage focus is hull and machinery insurance and cargo insurance. The program follows an order for DFC to provide political risk insurance and financial guarantees for maritime trade in the Gulf after oil and LNG tanker transit halted in the Strait of Hormuz between Iran and Oman.

The change was notified on March 1 and applies from 7 pm India time on March 3. The revised high-risk areas include Pakistan waters; the Persian/Arabian Gulf and adjacent waters and ports (including the Gulf of Oman); Iran; and other countries under UN, UK, US, or EU sanctions. They also include the Sea of Azov and parts of the Black Sea (by coordinates), waters of Ukraine, Russia, and Belarus, and parts of the Indian Ocean, Gulf of Aden, and Southern Red Sea. The notice affects only War Risks cover. The notice period applied was 72 hours.

The UK added Maritime Mutual Insurance Association (NZ) Ltd to its Russia sanctions list, citing involvement in business tied to the Russian energy sector. The designation statement alleges MMIA "has been involved in obtaining a benefit from, or supporting the Government of Russia, by carrying on business in a sector of strategic significance to the Government of Russia, namely the Russian energy sector." A published investigation in October alleged MMIA provided insurance that enabled vessels to skirt Western sanctions and trade Iranian and Russian oil. New Zealand Police Financial Crime Group executed search warrants in mid‑October at MMIA company offices in Auckland and Christchurch and at a residential address. MMIA has stated it strongly disagrees with the designation and is considering its options while the police probe continues.

India's Insurance Regulatory and Development Authority (IRDAI) has approved risk-based capital (RBC) norms and a new accounting standard, Ind AS 117, effective April 2026. The RBC rules tie capital requirements to risks from underwriting, investments, credit, and operations, replacing a uniform solvency approach. Ind AS 117 will shift revenue recognition to spread income over the insurance coverage period and demand greater financial disclosure. These reforms align Indian insurance practices with global standards and are expected to impact product design, pricing, and risk management.

The Green Climate Fund invested $20 million in a project titled Harnessing Insurance for Climate Resilience in Indian Agriculture. The investment is GCF's first in a microinsurance initiative and is designated to protect smallholder and marginal farmers from climate-induced losses. The funding will be used to scale coverage for uninsured farmers, who constitute 86% of the country's agricultural population, and to increase Kshema's underwriting capacity for crop risks linked to climate volatility. The investment will also support expansion of Kshema's proprietary Kshema Cognitive Engine to deliver customised insurance solutions and advisory services such as weather alerts and crop health insights.