Insurers eye ways to alleviate impact of Red Sea disturbances: Official

Insurance companies operating in the marine insurance sector are closely monitoring the Red Sea developments, to adjust pricing strategies and risk management practices when needed, Al Eqtisadiah newspaper reported, citing Adel Al-Issa, spokesperson for insurance companies in Saudi Arabia.

While some price hikes may take place in response to increased risks, insurers explore ways to mitigate the potential impacts on policyholders, Al-Issa added.

He added that the Joint War Committee, affiliated to Lloyd's Authority, classified the Red Sea and Gulf of Aden as areas of high risk for marine insurance and not covered by war insurance. Therefore, any tankers or cargo ships in these areas will bear the risk of any potential damage.

Some ship operators may decide to save costs and use safe waterways, but at the expense of arrival delays. In this case, the marine insurance policy does not cover the costs resulting from delayed shipments.