War risk insurance costs have jumped by up to 60 per cent due to escalating tensions in the Middle East, particularly around the Strait of Hormuz, reported Fort Lauderdale's Maritime Executive.

Premiums in the Strait rose from about 0.125 per cent to 0.2-0.4 per cent of a vessel's hull and machinery value. Broader Gulf routes saw rates climb from 0.2-0.3 per cent to 0.5 per cent, adding daily costs for VLCCs. A ceasefire between Israel and Iran eased rates slightly, but volatility remains.

Saleem Khan, data analytics officer at Pole Star Global, outlined strategies to mitigate rising costs. He urged charterers and brokers to work only with reputable, transparent firms, warning that opaque or sanctions-linked entities can trigger premium hikes or loss of cover.

Mr Khan recommended using maritime intelligence platforms to access beneficial ownership data. This visibility helps verify vessel chains, avoid links to illicit actors, and build underwriter confidence, potentially lowering premiums.

He also advised embracing dynamic route management and real-time risk intelligence. Weekly or daily changes in war risk ratings require tools like vessel tracking and GNSS jamming alerts to avoid costly detours and insurance surcharges.

Fleet-based packages and bundled premiums can reduce per-voyage costs, especially for operators with multiple vessels. He said these options are worth exploring in volatile zones.

Integrated policies combining war risk and cyber cover are essential, given threats like AIS spoofing and cyber interference. Such coverage ensures broader protection against evolving maritime risks.

War risk premiums remain high due to physical hazards and concerns over sanctions and intermediary integrity.