Seven of the 12 leading P&I clubs - marine mutual insurance associations established and run by shipowners and related stakeholders - will cease providing war risk coverage for vessels entering the Persian Gulf from the 5th.
According to notices reviewed by Bloomberg News, war risk cover will automatically lapse if a vessel enters the Persian Gulf, specified nearby waters or Iranian territorial waters after midnight London time on the 5th. The notifications were issued by seven members of the International Group of P&I Clubs.
The move applies solely to war risk coverage and does not affect any other terms of protection and indemnity insurance.
At least one Japanese insurer has also reduced its exposure amid rising tensions in the Middle East. MS&AD Insurance Group Holdings has suspended underwriting a range of policies covering war-related risks in waters surrounding Iran, Israel and neighboring countries, according to a company spokesperson.
Tokio Marine Holdings and Sompo Holdings said they are closely monitoring developments in the region.