Insurers shun many ships carrying goods through the Red Sea as attacks continue
CNN
A growing number of insurers are refusing to cover American, British and Israeli vessels against war risks in the key commercial shipping corridor through the Red Sea as attacks from Houthi rebels continue.
A growing number of insurers are refusing to cover American, British and Israeli vessels against war risks in the key commercial shipping corridor through the Red Sea as attacks from Houthi rebels continue. The hesitation from insurers comes as US officials have warned American merchant ships to steer clear of the vital waterway until further notice. The crisis in the Red Sea threatens to damage the economy by increasing prices on consumers and delaying the shipment of goods. “Some insurers are no longer willing to underwrite war-risk insurance for vessels with ownership or involvement with the US, UK or Israel traveling through the Red Sea,” said Marcus Baker, global head of marine, cargo and logistics at Marsh, the insurance brokerage and risk advisory unit of Marsh McLennan. A US-owned and operated cargo ship was hit by a Houthi anti-ship ballistic missile on Monday, according to US Central Command. A Houthi official vowed on Wednesday that attacks on “Israeli-linked” vessels in the Red Sea as well as the Arabian Sea will continue. Although not all insurers are imposing restrictions, Baker said the insurance market is clearly “tightening” and rates could continue to surge.