GIC Re’s decision will impact both public and private sector general insurance companies in the marine hull space
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This move from GIC Re, the largest reinsurer in the domestic reinsurance market in India, came after the US-Israeli military operation against Iran and the country retaliated by attacking several West Asian countries.
In a notice issued to insurance companies on March 1, the reinsurance company said it will cease to cover the marine hull war risks for certain high-risk zones from 1900 hours IST on March 3. These areas include parts of the Persian or Arabian Gulf, Gulf of Oman, Iran and all other countries under sanction, certain areas of Black Sea and Sea of Azov, waters linked to Russia, Ukraine and Belarus, as well as select stretches of Red Sea, Gulf of Aden and Indian Ocean.
48-hour notice
GIC Re’s decision will impact both public and private sector general insurance companies in the marine hull space.
“GIC had sent the 48-hour notice to the insurers on March 1, informing about the withdrawal of the overage. Accordingly, we have sent notices to all our clients (shipping lines) that they will no longer have the marine hull cover with effect from 7 p.m. on Tuesday,” a top official of a large general insurance company told businessline.
“Till the embargo is there, a shipping company may seek cover under the marine hull by paying extra premium if the company still needs to operate in these high-risk zones. This is optional,” the official said.
Soon a meeting of reinsurers is scheduled where all reinsurance companies are likely to decide their action plans on marine hull insurance. “Reinsurers are yet to decide on marine cargo and aviation war coverage. It will soon be notified “ the person cited above said.
“Amid the heightened geopolitical risk in the Middle East, major shipping lines have already been affected. It will likely result in war risk cover being completely withdrawn. The war cover for new risks would be either unavailable and even if available would be extremely expensive. This can mean that the cost of shipping will go up considerably,” said Hari Radhakrishnan, Expert, Insurance Brokers Association of India (IBAI).
“For aviation insurance, the war risk coverage will become expensive or unavailable for affected countries. The wider economic impact such as inflation and supply chain disruptions can also adversely impact claim costs,” Radhakrishnan added.
Amid the ongoing middle-east crisis and elevated geo-political tensions, reinsurance renewal rates for marine hull war risk cover are expected to increase substantially. Maximum reinsurance renewals in India happen in the month of April.
(With inputs from G Naga Sridhar, Hyderabad)
Published on March 2, 2026