The Joint War Committee (JWC), made up of representatives of Lloyd's and the International Underwriting Association of London (IUA), has widended the high-risk zone in the Red Sea. This zone now extends to 18 degrees north, against 15 degrees north previously.
This decision follows the surge of attacks on ships in the Red Sea against a backdrop of war in the Middle East.
Ships travelling in the Red Sea are required to inform insurers when crossing the area, and pay an additional premium for a seven-day cover period.
According to the JWC, the cost of war risk insurance [4] is currently between 0.5% and 0.7% of a ship's value, compared with 0.07% at the beginning of December. This translates into the payment of additional tens of millions of dollars for a seven-day voyage.