Howden Announces New Cargo War Risk Facility for Red Sea Ships | Insurance business America
It offers up to $50 million per insured vessel
marine
By Kenneth Araullo
Global insurance group Howden has announced the launch of a new cargo war risk facility designed to insure ships against drone and missile attacks by Yemeni militia groups in the Red Sea.
The new insurance facility provides coverage of up to $50 million per vessel, with the highest level of coverage to date being $150 million. The facility specifically targets risks in the Bab al Mandab Strait, Red Sea and Indian Ocean – areas currently affected by active conflict.
Howden noted that this is the first insurance product designed specifically to protect cargo vessels operating in these high-risk zones, demonstrating the company’s initiative to address complex global risks and mitigate the impact on international supply chains.
Howden said the company had secured policies on four continents within the first month of its launch, offering a more efficient route for shipments through the Red Sea and Suez Canal. This route avoids the alternative of circumnavigating the Cape of Good Hope, which can add two weeks to a typical Far East-Europe trip and increase emissions by 70%.
Ellis Morley, Howden’s deputy director of freight and commodities, said the Red Sea conflict is a significant obstacle for customers with operations in the region.
“Ships seek protection while navigating this security hotspot and we have worked with specialist marine insurers to establish this facility, which protects cargo in the region up to a limit of $150 million per ship.” We leverage Howden’s collective Expertise to provide a clear path forward and help find solutions to global supply chain pressures,” said Morley.
This is the latest initiative introduced in recent years to solve complex scenarios. These included arranging insurance for a United Nations-chartered vessel transporting grain from Ukraine to the Middle East and Africa in 2022 and facilitating insurance for a ship-to-ship transfer of crude oil from the FSO Safer, which averted a major oil spill, oil spill and environmental disaster.
Danny Whiteside, managing director and global practice leader for shipping, freight and logistics at Howden, highlighted the new facility as another example of how insurance “is a force for good in the world”.
“Howden has gained access to London’s specialist marine insurance market. In doing so, we are helping to address the direct impact of the Red Sea conflict and helping our customers find a way through the chaos,” said Whiteside.
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2024-04-17 09:16:10
www.insurancebusinessmag.com
