Insurance Intelligence

War-Risk Insurance Has Changed Everything

Maritime war-risk premiums have surged across both chokepoints. Understand the true cost impact on your supply chain.

5.5xavg. premium increase
across both chokepoints

Strait of Hormuz

Lloyd's market, Q1 2026 benchmark rates

Pre-crisis

0.15%

Current

0.95%

Increase

6.3x

Via Hormuz (blocked)

Lloyd's JWC listed area. Most underwriters declining coverage.

6.3x

0.95% total

Cape of Good Hope reroute

Standard marine cargo rates. Slight premium for longer voyage.

1.7x

0.25% total

Overland/Pipeline

Inland transit risk. Yanbu port adds war-risk component.

3.0x

0.45% total

Bab el-Mandeb / Red Sea

Lloyd's market, Q1 2026 benchmark rates

Pre-crisis

0.12%

Current

0.57%

Increase

4.8x

Via Suez/Red Sea (threatened)

Houthi attacks ongoing. 7-day notice requirement by most underwriters.

4.8x

0.57% total

Cape of Good Hope reroute

Standard rates with minor premium for extended voyage duration.

1.4x

0.17% total

Air Freight

Standard air cargo insurance. No war-risk premium.

1.0x

0.08% total

China-Europe Rail

Russia transit adds political risk premium.

1.7x

0.2% total

Insurance Cost Per Commodity

Estimated war-risk insurance cost per TEU at average cargo values

CommodityCargo Value/TEUOriginal RouteCape ReroutePremium Increase
Polyethylene (PE)$45.0K$42.8K$11.3K6.3x
Aluminum (Unwrought)$55.0K$47.9K$11.0K7.3x
Nitrogen Fertilizer (Urea)$25.0K$20.0K$4.5K8.0x
Polypropylene (PP)$50.0K$47.5K$12.5K6.3x
Sulfur$15.0K$10.9K$2.1K9.1x
Semiconductors & Electronics$2.50M$1.25M$250.0K10.0x
Coffee, Tea & Spices$60.0K$37.2K$10.8K5.2x
Pharmaceuticals & APIs$1.20M$756.0K$168.0K7.9x
Sugar (Raw & Refined)$18.0K$8.6K$2.3K6.0x
Textiles & Garments$80.0K$77.6K$16.0K8.1x
Natural Rubber$35.0K$28.0K$6.0K8.0x

Estimate Your Insurance Impact

Pre-crisis premium

$150

Current premium

$950

Annual increase

+$800

Insurance is just one part of the picture.

Insurance rates are based on Lloyd's of London market benchmarks as of Q1 2026. Actual premiums vary by underwriter, policy type, vessel age, and specific route. This tool provides estimates for planning purposes only and does not constitute insurance advice.