Global Marine Insurance Costs Begin to Ease after Strait of Hormuz Reopening

Global marine insurance markets are showing early signs of easing, with war risk premiums beginning to decline following the gradual resumption of shipping traffic through the Strait of Hormuz after a U.S.-Iran ceasefire agreement.

Insurance and shipping industry reports indicate that while geopolitical risks have not fully dissipated, the sharp escalation seen during the peak of the crisis has subsided, prompting a cautious softening in pricing across key maritime routes.

According to a recent report from global commercial insurer Allianz, approximately 1,150 cargo and container vessels, carrying goods valued at around $125 billion, are still awaiting a full normalization of shipping operations in the Gulf region after months of disruption linked to instability in the Strait of Hormuz.

The report also estimated that up to 20,000 seafarers were affected by the disruption, highlighting the operational and human impact of the crisis on global trade flows. It noted that restoring previous traffic levels, once averaging around 140 vessels per day—will depend on sustained security guarantees and long-term stability in the region.

While insurance coverage for transiting vessels remains available, Allianz emphasized that the primary concern for the market has shifted from pricing alone to broader security risks affecting crews, vessels, and critical shipping lanes.

A more immediate sign of easing pressure came from market data cited by Reuters, which showed that war risk insurance premiums for vessels passing through the region have fallen to approximately 3% of a vessel’s value, down from around 5% just days earlier. The decline represents a substantial reduction in per-voyage insurance costs, in some cases saving hundreds of thousands of dollars per ship.

The improvement in pricing coincides with the gradual return of commercial shipping activity through the Strait of Hormuz, following the ceasefire announcement and partial restoration of crude oil exports from Gulf producers.

Despite the downward trend in premiums, insurers caution that the market has not yet fully normalized. Dozens of vessels remain delayed within the Gulf, and overall tanker utilization rates are still below pre-crisis levels.

Industry analysts say the coming weeks will be critical in determining the direction of marine insurance pricing ahead of July contract renewals. A sustained period without security incidents could reinforce the current downward trend in war risk premiums, while any renewed escalation would likely reverse recent gains and push costs higher once again.

For now, the market remains in a transitional phase, balancing cautious optimism over improved security conditions with lingering uncertainty about the durability of the regional de-escalation.