Saudi-linked Ships Labeled High-Risk as Insurance Costs Soar Amid Regional Tensions
According to the International Desk of Webangah News Agency, a report by the Financial Times indicates that insurance firms have raised prices and scaled back coverage for ships and cargo, notably oil and chemical shipments. This decision stems from the ongoing conflict and the military operations conducted by Yemeni armed forces against Saudi Arabia.
In some instances, insurance providers have reportedly refused to cover war-related risks for vessels, particularly in the Red Sea. This region has gained significant importance for Saudi Arabia’s oil exports following disruptions to shipping traffic in the Strait of Hormuz.
The report highlights that insurers have adopted a more cautious approach toward Saudi-linked vessels in recent months. This heightened scrutiny is attributed to an intensification of attacks by Yemeni armed forces against these ships, leading them to be classified as high-risk.
In response to these developments, Saudi Arabia’s Ministry of Finance is reportedly developing a mechanism to ensure vessel insurance coverage at a reduced cost, potentially up to $186 million for incidents such as missile attacks.
Saudi Arabia is reportedly engaged in discussions with intermediaries in London regarding a proposed insurance plan to cover war risks and political hazards.
