Home / Business and Economy / GIC Re Pulls War Cover: High-Risk Routes Now Uninsured
GIC Re Pulls War Cover: High-Risk Routes Now Uninsured
6 Mar
Summary
- GIC Re ceases marine cargo war cover in high-risk maritime zones.
- Cancellation effective March 5, 2026, ceasing liability by March 7.
- Tensions near Strait of Hormuz cited as primary reason for withdrawal.
State-owned reinsurer GIC Re has announced the cessation of marine cargo war coverage for facultative reinsurance contracts in numerous high-risk maritime regions. This significant withdrawal of cover is scheduled to take effect from March 5, 2026, with GIC Re's liability concluding by March 7, 2026.
The decision stems from escalating geopolitical tensions in the Persian Gulf and West Asia, particularly around the Strait of Hormuz, a crucial artery for global trade handling approximately 20% of the world's oil. This heightened risk has prompted major cargo carriers to suspend operations or reroute vessels, leading to port congestion.
The affected high-risk zones encompass areas such as Pakistan waters, the Persian Gulf, Gulf of Oman, Indian Ocean, Gulf of Aden, the southern Red Sea, and waters of Ukraine and Russia. GIC Re has also designated parts of the Indian Ocean, Eritrea, and several Gulf states as high-risk areas.
While cargo that has already departed will retain its existing war cover, new voyages into these zones will be uninsured. GIC Re has indicated a possibility of reinstating coverage under revised premium terms and conditions upon review of client requirements and advance requests for exclusion buybacks.
