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 centers on how marine insurers rapidly reprice risk when geopolitical pressure affects one of the world’s most important chokepoints. Lloyd’s of London, the hub of global marine insurance operating for more than three centuries, saw the Lloyd’s market react after Tehran blockaded the Strait of Hormuz on February 28 in response to U.S. and Israel strikes. Brokers said war insurance policies were quickly cancelled and then reinstated at much higher prices, with renewed scrutiny of “individual risk factors” after additional Middle East strikes this week. Reported premiums for transits jumped to as high as 10% of a vessel’s value from about 0.25%–0.5% pre-war. Hull war rates later eased to 1%–3%. Underwriters also offered “no-claims bonuses” returning half premiums, while coverage windows shortened to six hours before sailings.