Article ID: 62c314ca24e597f72b1d3ac6ed9e8538f9d22790725aab69109efa3ebc785d9a
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URL: https://www.businessinsurance.com/war-risk-insurance-costs-surge-after-houthi-attacks/
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War risk insurance costs surge after Houthi attacks - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers War risk insurance costs surge after Houthi attacks Marine Middle East/Africa Jul 23, 2026 (Reuters) – The insurance cost of shipping goods through the southern Red Sea doubled for some companies on Thursday, after Yemen’s Iran-aligned Houthis attacked at least one tanker overnight, sources said. The Houthis said their forces had carried out missile and drone strikes on Saudi oil tankers, the Encelia and the Layla. This worsened the turmoil for shipping in the region, with the Strait of Hormuz essentially shut down. Maritime security sources confirmed the strike on the Encelia, off the coast of the southern Saudi port of Jizan, close to Yemen’s border. Reuters could not immediately confirm the attack on the Layla, but U.S. President Donald Trump mentioned two attacks on Saudi tankers. On Monday, the Houthis declared a naval blockade against Saudi Arabia, opening a potential new front against the U.S. in its war with Iran. On Thursday, the sources said, indicative war risk premiums for voyages through the southern Red Sea rose to over 1% of the value of a ship from around 0.75% on Tuesday and 0.3% last week before the Houthi announcement, according to the sources, who declined to be identified due to the sensitivity of the matter. Rates for some shipping companies calling at Saudi ports and also Saudi-linked ships were quoted as high as 3% for voyages from southern Saudi ports in the Red Sea such as Jizan and Al Shuqaiq, which would take them closer to Yemeni territory and for transits through the Bab el-Mandeb gateway further south that leads into the Gulf of Aden, the sources added. Even small changes to war insurance add hundreds of thousands of dollars in extra costs for a seven-day voyage. Rates for other Saudi Red Sea ports, such as Jeddah and Yanbu, which are further north up the coast and closer to the Suez Canal, were quoted around 0.1% reflecting a lower risk profile for the moment, sources said. Two Chinese supertankers that loaded Saudi oil at Yanbu this week sailed through the Bab el-Mandeb on Wednesday. It was unclear what insurance costs were paid. Red Sea traffic has not fully recovered since Houthi attacks off Yemen’s coast began in November 2023, with the group citing solidarity with Palestinians in the Gaza war. The group’s attacks on merchant ships only ended with the Gaza ceasefire last October. Successful passage of a China-owned tanker through the Bab el-Mandeb suggested “the blockade will be targeted at vessels linked to Saudi and Western interests, as was the case during the 2023-25 Houthi Red Sea anti-shipping campaign,” said Hamish Kinnear, principal Middle East and North Africa analyst at risk intelligence company Verisk Maplecroft. “Shipping firms now have to contend with heightened risks through two trade chokepoints, with several vessels already forced to re-route in response to Houthi threats.” Related News Teen suing Meta over mental health drops claims days before trial July 23, 2026 Comp exclusivity bars worker’s assault, negligence claims July 23, 2026 Brown & Brown expands AI initiative after pilot projects boost productivity July 23, 2026 House committee advances bill to kill federal heat standard July 23, 2026 Class action filings tick back up in first half July 23, 2026 Coupang logistics fire losses could top $230M July 23, 2026 Lloyd’s faults former CEO over undisclosed relationship July 23, 2026 First-half global insured cat losses down 50%: Aon July 23, 2026 Rail giant refuses to pay $12.3M ransom after cyberattack July 23, 2026 Facebook-f X-twitter Linkedin-in Business Insurance is a singular, authoritative news and information source for executives focused upon risk management, risk transfer and risk financing. 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