Shipping insurers are likely to re-examine their ability and willingness to provide cover due to the present situation around the Arabian Gulf, International Union of Marine Insurance (IUMI) has said.

Insurers will be mindful of the impact the war might have on accumulations at nearby ports as well as on the vessels and crews as they navigate longer sea routes. 

"We are likely to see disruptions to supply chains in the short-term, as a result," the organisation said.

IUMI and the marine insurance community are closely monitoring the situation in the Middle East  and, in particular, the safety and free passage of shipping in the Arabia Gulf and Red Sea. As with all shipping interests, the safety of seafarers will be a priority for owners, it said.

The situation remains fluid with a number of vessels being trapped in the Gulf and many operators re-routing their vessels to avoid the high-risk areas. 

The granting of war cover for the Gulf and Red Sea is and will remain available under specific agreement on a single voyage basis as long as navigation is authorised by governments and flag states. 

"By way of explanation – in circumstances such as these, some insurers will serve a Notice of Cancellation in relation to the cover their assureds have in place. This is to enable the insurer to reassess the risk and then reinstate the cover at adjusted terms. It is important to recognise that a Notice of Cancellation does not, necessarily, end the cover. War cover remains available for owners and operators wishing to take it," it said.

It should be noted that IUMI members provide property insurance (hull, machinery and cargo) whereas liability insurance is usually covered by Protection & Indemnity Clubs, many of whom operate under the umbrella of the International Group of P&I Clubs.