General Insurance Article - Persian Gulf ship seizure to have adverse effect on premiums


Jonathan Moss, head of transport and marine at global legal business, DWF, comments on the seizure of the British vessel in the Persian Gulf and the subsequent impact on insurance premiums. He said:

 "The seizure of the British vessel is unacceptable and clearly an act of retaliation as a consequence for the British authorities seizing the Iranian Grace 1 supertanker offshore Gibraltar on 4 July. The rising tensions as a result of these incidents will continue to have a knock on effect on global fuel prices and insurance premiums.
 
 "The global insurance markets are accustomed to factoring geopolitical uncertainty into pricing models, nevertheless this geopolitical fallout has not been seen since 2003. In 2003, rates for Hull & Machinery, War Risk cover for tankers in the Persian Gulf increased significantly owing to the political instability in the region.
 
 "In particular, global marine insurers are already closely monitor the current situation and employ complex risk models. Given the hostility escalating, underwriters will also be closely scrutinising voyages on a case-by-case basis with premium increases covering vessels in the region a near certainty. Ultimately, this uncertainty in the Gulf region is likely to lead insurers to raise premiums, renegotiate terms of cover and introduce riders to Marine and Energy contracts of insurance and reinsurance, in the face of a cocktail of instability in the region."
  

Back to Index


Similar News to this Story

Hit by wild animal car insurance claims on the rise
Three fifths (57%) of drivers have taken evasive action to avoid a collision with a wild animal on British roads, according to a new study by AA Insur
Motorists missing savings by not embracing telematics
A survey conducted by Redtail Telematics and YouGov has revealed that as annual premiums rise and recent research highlights that motorists are being
Any in car distraction is a risk to young motorists
insurethebox responds to the proposals published today by the Transport Select Committee relating to the use of mobile phones in cars. insurethebox R

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.