Freight carriers will have to pay an additional premium to restore war cover for shipments passing through high-risk areas amid the escalating crisis in West Asia, experts said. Oil prices are also likely to face upward pressure in the near term," Policybazaar Head (marine insurance) Balasundaram R said. "If the conflict becomes a serious war risk, insurance premiums for ships are likely to go up, and insurance companies may adjust pricing quickly based on the risk level. Heightened geopolitical tensions in the Persian Gulf have resulted in the withdrawal of war risk coverage for marine insurance, Insurance Brokers Association of India (IBAI) expert Hari Radhakrishnan said. Once cancelled, fresh war risk cover may become unavailable — or, where still offered, priced at prohibitively high levels," Radhakrishnan said.
