German Insurers Continue Coverage for Ships in Gulf Despite War

Despite the ongoing Iran war, German ships operating in the Gulf region remain eligible for insurance coverage, according to the General Association of the German Insurance Industry (GDV). GDV Managing Director Jörg Asmussen stated that while insurers are adjusting conditions and increasing prices, they are not withdrawing from the market. War risk insurance, which typically covers damage from mines and other conflict-related hazards, remains available. However, the Association of German Shipowners (VDR) reports that at least 50 German vessels are currently stranded in the Persian Gulf, with traffic in the Strait of Hormuz largely at a standstill due to Iranian threats and a US naval blockade. Insurance brokers note that premiums have multiplied, averaging five to six times higher than pre-war levels. Shipping companies now face costs ranging from three to seven percent of a ship's value for insured trips through high-risk areas. This situation reflects a standard industry response to sudden risk escalations, resulting in significant additional financial burdens for maritime logistics firms navigating the critical oil and gas trade routes.