Allianz Warns of Major Marine Insurance Claims From Iran War as Hormuz War-Risk Premiums Surge 1,000%

Europe's largest insurer, Allianz SE, has issued a stark warning about the financial exposure facing the global marine insurance market as a result of the ongoing conflict in the Middle East. In its annual safety and shipping review, Allianz said it has already received claims stemming from the conflict, some of which could result in total losses of vessels.

The conflict escalated sharply after US and Israeli forces struck Iranian sites on February 28, 2026, prompting retaliatory attacks from Tehran. The Strait of Hormuz — the narrow waterway through which roughly a fifth of the world's oil passes — became a live combat zone for commercial shipping. At least eight to nine tankers have been hit by drones and missiles, with affected vessels including container ships, bulk carriers, and oil tankers. Régis Broudin, Allianz Commercial's global head of marine claims, said loss of life and property damage to both vessels and cargo are the main causes of claims to date.

The financial dimensions are substantial. War-risk insurance premiums for Hormuz transits surged by more than 1,000%, meaning some vessels faced costs exceeding $1 million per voyage to enter or exit the strait. While higher premiums initially generate additional revenue for insurers, repeated attacks can quickly convert that pricing into large claims exposure. Allianz estimated that vessels and cargo with a combined value of $125 billion were trapped in the Persian Gulf as of June 15, 2026.

The disruption has reshaped the marine insurance market structurally. Multiple insurers cancelled or repriced war-risk coverage for Hormuz transits beginning in early March, and the Lloyd's Market Association's Joint War Committee expanded its high-risk designation to cover the entire Persian Gulf. In response to soaring premiums and withdrawn coverage, the US International Development Finance Corporation (DFC) partnered with leading US insurers — later expanded with Chubb and additional partners — to establish a reinsurance facility providing up to $40 billion in coverage spanning hull, cargo, and liability risks. The episode illustrates how geopolitical risk has become a major driver of shipping losses and how governments are increasingly stepping in as insurers of last resort to preserve critical trade routes.