ICICI Lombard General Insurance has asked internal teams to identify shipments moving through the region and assess the company’s exposure, while introducing a revised war-risk premium of about 0.25% for cargo linked to Gulf countries, according to people familiar with the development. Premium rates for shipments passing through the Red Sea will remain unchanged for now, the insurer has said.
The insurer said recent geopolitical developments have heightened the risk of war-related disruptions across the Gulf region, prompting a reassessment of marine exposures.
Despite the increased risk, the company has not issued a war-cancellation notice and existing marine policies will continue to remain in force, subject to sanctions and standard policy limitations.
Under the revised pricing framework, shipments involving Gulf countries will attract a war-risk premium of about 0.25%, along with applicable taxes and stamp duty. The rate will apply across marine annual policies, single-transit covers and marine certificate products covering cargo linked to Gulf ports. Industry executives said insurers are reviewing exposures to evaluate potential risks to marine portfolios and ensure compliance with war-risk provisions embedded in cargo policies.
ICICI Lombard has asked teams to compile shipment-level data, including policy numbers, ports of loading and discharge, vessel details, cargo value and the vessel’s current location. The exercise is aimed at mapping exposure under policies that include coverage for war and related perils such as strikes, riots and civil commotion.The review comes as tensions in the Middle East have raised concerns over the safety of key shipping routes and prompted insurers and reinsurers globally to reassess risk pricing for vessels and cargo moving through the region.
The company has also indicated that shipments involving Israel will require prior approval from its corporate office, depending on prevailing geopolitical conditions.