Ship Insurers Set for Major Claims From Iran War, Allianz Says

Specialty insurers are facing significant claims, potentially exceeding $3 billion, due to escalating US-Iran hostilities in the Strait of Hormuz. A recent Howden Re report estimated that the conflict could generate $2 billion to $3 billion in market-wide claims for the war, terror, and political violence segment. This figure is substantial, considering the segment's estimated annual global premium volume of $1.5 billion to $2 billion. Initially, specialty insurers had reported manageable losses through the first quarter, but recent events may change this outlook.

The escalation intensified after Iran's Revolutionary Guards launched missile and drone attacks on US military bases in Jordan, Kuwait, and Bahrain, following American strikes on Iranian targets near the Strait of Hormuz. This marks one of the largest escalations since a ceasefire was reached in April. Consequently, war risk premiums for Hormuz transits have surged from approximately 0.15%-0.25% of hull value to as high as 10% after an incident involving an Apache helicopter. Global oil trade flows through the strait were also reportedly down 62% in May 2026.

Despite the rising risks, a $40 billion maritime reinsurance facility backed by major insurers like Chubb and AIG has seen no uptake, indicating that Washington may have misidentified the core problem as insurance availability rather than the ongoing conflict itself. Insurers, like Munich Re, have already disclosed significant Iran war claims, with one report finding them at approximately $106 million (€90 million). While Lloyd's had previously stated the conflict was not expected to be a capital event, this assessment came before the latest series of strikes on US bases. The Lloyd's Joint War Committee has maintained the Arabian Gulf's high-risk designation due to the persistent threat, and Red Sea war risk premiums, which surged 20-fold in early 2024, have remained elevated. The recent breakdown of the April ceasefire provides little reason for underwriters to anticipate a quick recovery in Hormuz pricing.