The Strait of Hormuz has been closed, mined, challenged and partially reopened since February. The war risk premium for the most exposed ships rose from 0.125% of hull value to 10% – an 80-fold increase that made headlines about the London maritime war market finally getting what it deserved after years of lenient conditions. Four months later the reality is more complex. The market has absorbed losses, written trades lower than rate headlines, taken a government intervention that solved the wrong problem, and is now pricing in a recovery that may or may not come through the 60-day armistice window that expires in mid-August. Whether any of this adds up to profits depends on what part of the market you are in, and whether events arise over the next six weeks or events arise further down the line.
The Strait of Hormuz Crisis: Why the Greatest Opportunity in Maritime War Insurance Lies Ahead? & more related News Here
