Howden Introduces War Risk Cargo Insurance Amid Rising Geopolitical Tensions
Howden, a prominent UK-based insurance broker, has launched a new war risk cargo insurance to safeguard vessels navigating through the Red Sea against potential drone and missile attacks amidst escalating geopolitical tensions.
As reported by Reuters, this innovative insurance offering is the “first dedicated coverage of its kind” aimed at protecting cargo ships in an active conflict zone, including critical maritime routes such as the Bab al-Mandab Strait, the Red Sea, and the Indian Ocean. Ellis Morley, Howden’s associate director of cargo and commodities, highlighted that the conflict in the Red Sea has posed significant challenges for clients operating in the region, prompting a heightened demand for security measures in this volatile area, according to Reuters.
The war risk cargo insurance policy spans a 12-month term and provides coverage of up to $50 million per vessel. Notably, Markel, a leading marine insurer, serves as one of the primary underwriters for this product, alongside Navium as a co-lead.
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This strategic move by Howden comes in response to the cancellation of existing war cover for many clients, necessitating the development of a competitive alternative. As indicated by Reuters, Howden aims to maintain competitive premiums by expanding its insurance facility, although specific premium figures were not disclosed by Morley.
The introduction of this specialized insurance underscores the evolving landscape of risk management in the maritime sector, particularly in regions marked by heightened geopolitical tensions. Howden’s initiative aims to provide comprehensive protection and peace of mind to shipping companies navigating through complex and potentially hazardous waters, contributing to enhanced resilience in the face of geopolitical uncertainties.
