BE - September 2026

Study cal closure of the Strait of Hormuz. It also unfolded in a less visible but equally consequential arena: marine war-risk insurance. Before the crisis, premiums charged to vessels transit- ing the strait ranged from 0.15% to 0.25% of insured hull value (Insur- ance Business, 2026). In the days fol- lowing the sharp deterioration in regional security conditions in late February, the Joint War Committee of the Lloyd's Market Association, through designation JWLA-033, ex- panded the area classified as ex- posed to war risk to cover the wider Gulf region (Lloyd's Market Associa- tion, 2026). The decision caused ex- isting cover to expire as of March 5, requiring shipowners to renegotiate policies under conditions of acute uncertainty. The reclassification triggered a dra- matic surge in premiums, which rose to around 1% of hull value for cover renewable every seven days. Accord- ing to broker Marsh, premiums briefly reached 10% during periods of peak tension (Insurance Business, 2026; Caixin Global, 2026). For a very large tanker valued at $100 million, the additional cost could therefore reach $10 million for a sin- gle transit. As private insurers pro- gressively withdrew, U.S. authorities introduced an exceptional public ISSUE 213 SEPTEMBER 2026 the BANKING EXECUTIVE 57