Red Sea crisis: No claims yet, but insurance cost may rise if tensions grow

Insurers are keeping a close eye on the developments and have made an upward revision to their risk perception with companies turning cautious of the tense geopolitical scenario

Indian insurers expect to see a rise in marine insurance costs if the crisis faced by cargo vessels in the Red Sea escalates. However, they consider the present situation to be under control and have yet to receive any demand for claims.

“In case of a rise in incidents similar to the Indian oil tanker attack in the Red Sea (last month), there will be an increment in insurance costs for all cargo journeys made via the Red Sea,” said Parthanil Ghosh, president, retail business, HDFC ERGO General Insurance.
 

According to him, an increased frequency of such incidents will lead to