The world’s largest maritime insurance mutuals said they will withdraw war risk insurance cover for ships entering the Persian Gulf starting on Thursday, as the industry scrambles to work out how to price the cost of covering vessels sailing into the waterway.
The withdrawals are likely to discourage ship owners from loading cargoes within the Persian Gulf in the short-term, which is the source of about a fifth of the world’s supply of crude and a key exporter of refined fuels and liquefied natural gas.
While cover for vessels is available from other providers, several market participants said costs for ...