Risk situation for marine insurers in the Gulf Region remains high – but the market continues to function
The international transport insurance market remains resilient despite the ongoing blockade of the Strait of Hormuz. Coverage for cargo and marine insurance continues to be available, even though geopolitical tensions in the Middle East have noticeably altered the risk environment.
“The market continues to function, even under difficult conditions. Insurers are adjusting terms and pricing, but they are not withdrawing,” says Jörg Asmussen, CEO of the German Insurance Association (GDV). “Anyone needing to ship cargo in the Gulf region will be able to obtain insurance cover – albeit under modified conditions, but it will be available.”
For the German market, the impact is particularly evident in cargo insurance. Insurers must assess the extent of their exposure in regions affected by the blockade. “Based on this, decisions must be made regarding the extent to which existing war risk cover can continue to be offered for these areas under adjusted conditions,” Asmussen explains. Nevertheless, substantial capacity remains available. Rerouted shipments and reduced vessel traffic around the Strait of Hormuz are increasing complexity, but do not call into question the fundamental insurability of such risks.
Standard cover for traditional marine risks remains unchanged
In hull insurance, the situation is similarly stable. The heightened risk in the Persian Gulf has led insurers to exercise their contractual rights to adjust terms. This applies exclusively to war risks; standard cover for traditional marine perils remains unchanged. For affected areas, insurers are offering policyholders the option to continue war risk cover, typically subject to an appropriate war risk premium.
“It is not true that insurers are generally no longer willing to insure vessels in the Strait of Hormuz,” Asmussen clarifies. “What we are seeing is the usual market mechanism in response to increased war risk.” The impact on the German primary insurance market is limited in any case, as war risk cover in marine hull insurance traditionally plays a relatively minor role in Germany.
Around 1,000 Ships Affected by the Blockade in the Persian Gulf
According to the Lloyd’s Market Association, around 1,000 vessels in the Strait of Hormuz are currently affected by the blockade, with approximately 20,000 seafarers remaining on board. During the course of the conflict, 25 vessels have been hit by shelling.
Around 80 transport and aviation insurers operating in Germany provide coverage for travel and transport by air, land, and sea, and insure aircraft and vessels of all sizes, from recreational boats to container ships, as well as their cargo. Approximately 80% of premium income, totaling more than €2.5 billion (2025), comes from corporate and commercial clients.
The German transport and aviation insurance market is characterized by a strong position in Europe and a high degree of internationalization, with a focus on export risk coverage. Last year, transport and aviation insurers paid out claims totalling €1.4 billion.
