Quills and conflict: How protection in the Strait of Hormuz is bought and sold

Quills and conflict: How protection in the Strait of Hormuz is bought and sold highlights how marine insurers price risk as geopolitical events shift rapidly. Using Lloyd’s of London’s long-running marine insurance market as a backdrop, the report says Tehran’s February 28 blockade response to US and Israel strikes triggered an overnight spike in premiums. Rates for passing ships rose to as high as 10% of a vessel’s value, from roughly 0.25%–0.5% before the war, while hull war rates later eased to 1%–3%. Insurers also tightened underwriting, with policies typically priced 6 hours before departure and valid only 3–7 days. London brokers McGill and Partners and Marsh are cited, including examples from a $100 million oil tanker and the cancellation and reinstatement of war coverage.