Reinsurers Scrap War-Risk Cover After US Sinks Iranian Ship

Friday, March 06, 2026

London-based reinsurers are issuing seven-day cancellation notices on marine war-risk coverage after a US submarine torpedoed an Iranian warship off Sri Lanka, amplifying risk perception, according to people familiar with the matter.

Posted by lamplighter at 02:51 PM | 8 COMMENTS | permalink | Comment on This Entry |

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Pickled Pete opened the pandora's box.

Heckuva job stinky.

#1 | Posted by Nixon at 2026-03-06 03:21 PM | Reply | Newsworthy 1

More from the article ...

... Shipping lines can seek to reinstate coverage through buybacks once policies lapse, but the cost of doing so has surged beyond typical wartime adjustments, the people said, asking not to be identified because the information is private.

Rates that usually climb up to 50% in wartime have instead tripled in some cases -- rising to $750,000 per vessel from $250,000, they said. ...

#2 | Posted by LampLighter at 2026-03-06 03:24 PM | Reply | Newsworthy 1

Sinking a ship in international waters an undeclared war is clearly a war crime.

War cannot be insured. War crimes are definitely uninsurable.

AI Overview
Standard insurance policies almost universally contain "war exclusion" clauses, meaning damage, liability, or losses directly caused by war, declared or undeclared, acts of foreign enemies, or hostilities are not covered. These risks are considered uninsurable due to their catastrophic, unpredictable, and widespread nature, which could bankrupt insurers.

#3 | Posted by donnerboy at 2026-03-06 03:37 PM | Reply | Newsworthy 1

Wow, they only have to give 7 days notice?

#4 | Posted by eberly at 2026-03-06 03:57 PM | Reply

Wow, they only have to give 7 days notice?
#4 | Posted by eberly

I believe it was seven days from the start of the decapitation attack in Iran to the sinking of the unrelated-to-regime-change and out-of-theater Iranian frigate.

So the timing is perhaps a deliberate reflection on how fast Trump is escalating the global threat the United States poses to the security of international waters.

The United States murderimg hundreds on dozens of "drug" boats that could never reach the US is probably a factor here as well.

#5 | Posted by snoofy at 2026-03-06 06:28 PM | Reply

Anything to distract from Trump raping children.

#6 | Posted by ClownShack at 2026-03-06 07:03 PM | Reply

Oil price up moving cost of shipping up.
Shipping insurance unavailable.
Tariffs up.

Republicans are deliberately crashing the economy.

#7 | Posted by snoofy at 2026-03-06 07:55 PM | Reply

The United States murderimg hundreds on dozens of "drug" boats that could never reach the US is probably a factor here as well.

#5 | POSTED BY SNOOFY

I am a bit surprised they didn't machine gun the 32 survivors of the submarine attack in floating in the debris and then call them terrorists. And then laugh maniacally.

#8 | Posted by donnerboy at 2026-03-06 08:36 PM | Reply