Marine war risk underwriters have reacted quickly to the military strikes in the Middle East, according to Aon.

Responses have included issuing formal notices of cancellation under seven-day war clauses on certain annual hull war policies, head of marine for Asia Stephen Rudman says.

The broker has also seen withdrawal or revision of quoted additional premiums for transits through listed high-risk areas and the reinstatement of cover being offered at “materially increased” rates.

Insurers are also raising their underwriting scrutiny for voyages into or near sensitive zones, including potential requirement for prior approval.

The responses relate specifically to war risk extensions.

“The hull war market has reacted more immediately due to aggregation exposure and capital sensitivity,” Mr Rudman said.

“Additional premiums for vessels transiting high-risk waters are rising sharply and may continue to fluctuate in the short term.” 

Cargo war risk remains available, but rates are increasing and quotations are being reviewed on a voyage-by-voyage basis, particularly for energy and bulk commodity trades.

“At this stage, we are not seeing a systemic withdrawal of capacity. Rather, the market is repricing to reflect the elevated risk profile and reinsurance constraints.” Mr Rudman said.

Further rates are considered likely if the situation escalates materially.