🔺UK insurance companies expand the Red Sea risk area

▪The London marine insurance market has expanded the Red Sea, which is known as a high-risk area, following recent attacks by Iran-backed Houthi militants on ships.

▪Reuters reports, however, that London insurance companies have excluded Egypt’s waters from this new zone.

▪It is not clear exactly how much the insurance rates for ships transiting the Red Sea and the Bab el-Mandeb will increase, but after the Islamic Republic blocked the Strait of Hormuz, the insurance rates for ships passing through waters south of Iran rose by as much as ninefold, and even during some periods of the war, many companies refused to provide coverage for ships in this region.