LMA's Roberts: London continuing to provide coverage for marine trade in Middle East but 'picture is concerning'

By Michael Jones

June 18 - (The Insurer) - No clear outcome is discernible in how the escalation between Israel and Iran will affect maritime commerce but the picture is concerning, the Lloyd's Market Association's head of marine and aviation, Neil Roberts, said on Wednesday.

Roberts said the Joint War Committee, which he is secretary of, met on Wednesday morning to review the recent developments between Israel and Iran.

Iran and Israel have traded attacks since Friday, with missile strikes on major Israeli cities as well as nuclear and missile facilities in Iran leading to civilian casualties on both sides. These strikes included attacks on Israel's northern port city of Haifa, which also damaged the nearby Bazan Group-run oil refinery, the country's largest.

"Whilst the picture is concerning, maritime commerce is not currently being targeted directly by Israel or Iran and the seas remain open although the possibility of collateral damage and further Houthi intervention are factors," Roberts said.

The LMA marine and aviation head added that insurers are very aware that the situation is unfolding with no clear outcome discernible.

He said the Joint War Committee elected not to change the listed areas in the region, which is a result of ships calling or transiting most of the Middle East already having to notify underwriters, which can assess voyages on their merits.

The most recent Joint War Committee circular shows that listed areas in the Middle East include Iran, Iraq, Israel, Lebanon, Oman (Musandam Governorate), areas of the Persian or Arabian Gulf, Saudi Arabia (Gulf coast), Saudi Arabia (Red Sea coast) excluding transits, Syria, United Arab Emirates and Yemen.

"The London market continues to support trade by providing coverage options for legitimate marine risks in the region. The situation will be closely monitored as things may change rapidly," Roberts said.

On Wednesday this publication reported that marine war risk rates in Israel have trebled relative to last week to around 0.7%, while war risk rates for the Red Sea and Persian Gulf sit around 0.25% to 0.3% and around 0.2%, respectively.