Adds information about NorthStandard circular.
Oslo-based marine insurance provider Skuld has cancelled war risk coverage in the Mideast Gulf and the Gulf of Oman because of the deteriorating security situation in the region.
The move comes as US and Israeli attacks on Iran prompted a military response from Tehran, raising risk to shipping moving in and out of the Gulf through the strait of Hormuz. A small chemical and oil products tanker was hit there earlier today, and Oman's Duqm port was struck by drones.
"It is already evident that reinsurers' appetite for war risk exposure is tightening, and in practical terms, it will result in reinsurers withdrawing capacity at short notice," Skuld said. "Against this backdrop, the Association [Skuld] has therefore decided to issue the Assureds with a notice of cancellation of the War Risk Cover."
The notice of cancellation will take effect in 72 hours, or at 00:00 GMT on 5 March, when the war risk cover will be terminated automatically.
This notice of cancellation supersedes any other terms with respect to war risks that may be agreed, it said. It applies to war risk cover only; all other terms of cover are unchanged. The notice does not alter the position of any other area currently restricted or excluded under respective policies. The notice does not affect mutual protection and indemnity (P&I) and freight, demurrage and defence (FD&D) cover and the excess war risks cover afforded to Assureds with mutual P&I cover, according to Skuld.
NorthStandard P&I has cancelled certain war risk cover in the Mideast Gulf and the Gulf of Oman, citing the deteriorating regional security situation and a notice of cancellation from its reinsurers.
The insurer said the circular serves as formal notice of cancellation for the following 2026 extensions: war risks clause for additional covers; offshore P&I war risks clause; fixed P&I war risks clause; P&I war risks clause attached to charterers' entries; clause 2 of Section C of the Traders' Liability Cover; and the offshore bio chemical risks inclusion clause.
The notice shall run from 24:00 GMT on 1 March and will expire at 24:00 GMT on 4 March. With effect from 00:00 hours GMT on 5 March 2026, cover under those extensions will be automatically excluded in the following territories: Iran and Iranian waters including coastal waters up to 12 nautical miles offshore and Persian/Arabian Gulf and adjacent waters including the Gulf of Oman and waters west of the line from Oman's territorial limit off Cape al-Ḥadd at 22°42.5'N, 59°54.5'E northeast to the Iran-Pakistan border at 25°10.5'N, 61°37.5'E, according to the insurer.
"This notice does not alter the position of any other area currently restricted or excluded under respective policies," the company said. "All other terms and conditions remain unchanged."
