The Arab War Risk Insurance Syndicate (AWRIS) has announced the reinstatement of Cargo War cover for shipments transiting high-risk maritime corridors, including the Strait of Hormuz, the Arab Sea, and Bab Al Mandeb.
The move follows the expiration of a seven-day cancellation notice issued on 1 March 2026 and includes revised rating procedures reflecting heightened geopolitical volatility.
Coverage applies to new and non-attached risks, including valid open covers, with reinstatement rates updated daily and valid for 24 hours only. The reinstated terms include:
• Air shipments (to/from GCC countries): War & SRCC cover at 0.15% rate, 5% deductible.
• Sea shipments via Strait of Hormuz: War & SRCC cover at 0.15% rate, 5% deductible.
• Sea shipments via Bab Al Mandeb/Arab Sea: War & SRCC cover at 0.2% rate, 5% deductible.
The reinstatement excludes oil and oil-related shipments, arms, ammunition, and contracts linked to the US, UK, Iran, Russia, Ukraine, or Israel. Shipments exceeding $750,000 will be quoted on a case-by-case basis, as will hull war cover for vessels. AWRIS emphasises that the reinstatement reflects the need for flexible, short-term rating mechanisms in response to regional instability, while maintaining treaty cessions and standard exclusions.
The syndicate also reminds members of obligations such as immediate loss notification, voyage details, and compliance with sanction clauses.
This development underscores the insurance sector’s rapid adaptation to geopolitical risk, ensuring continuity of cover while balancing exposure in one of the world’s most sensitive maritime trade routes.
AWRIS, established in 1980, is a regional insurance pool based in Bahrain, created by Arab insurance companies to provide specialised insurance coverage for war-related risks. It has around 200 members.