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

Quills and conflict: How protection in the Strait of Hormuz is bought and sold explains how marine insurers are pricing risk almost in real time after renewed Middle East strikes. Lloyd’s of London, a centuries-old center of maritime insurance, saw the crisis reshape war coverage for vessels transiting the Strait of Hormuz after Tehran blockaded the strait on February 28 in response to US and Israeli strikes. Rates surged to as high as 10% of a ship’s value from pre-war levels of roughly 0.25%–0.5%, while hull war rates later eased to 1%–3%. London underwriters can issue policies with pricing just six hours ahead, and coverages typically last only three to seven days. Brokers including McGill and Partners and Marsh cite closer scrutiny of individual risk factors, with some underwriters offering “no-claims bonuses.”