LONDON โ Fewer than 10 percent of UK insurance brokers placed political instability at the top of their concerns for 2025, according to GlobalDataโs annual UK Broker Insurance Survey. But rising war risk premiums linked to the IranโIsraelโUS conflict and threats to close the Strait of Hormuz are forcing a sharp rethink.
GlobalData found only 8.0 percent of brokers identified political instability as the greatest business threat, while 13.2 percent pointed to competition from other brokers, and 11.2 percent to direct insurers. In contrast, broader consumer surveys show growing anxiety over war and terrorism, suggesting a disconnect between broker and client priorities.
Industry sources report that war risk premiums for shipments through the Middle East Gulf jumped to 0.5 percent of vessel value from around 0.2โ0.3 percent just a week earlier, as tensions around key shipping lanes intensified.
Charlie Hutcherson, an insurance analyst at GlobalData, said the premium surge โis a clear signal that insurers are repositioningโ across marine, energy, aviation, and political risk lines. He warned brokers โmay be underestimating the strategic impact of geopolitical risksโ as conflict dynamics evolve rapidly.
In mid-June, the London marketโs Joint War Committee convened to review high-risk areas around the Strait of Hormuz and Eastern Mediterranean. Although it did not expand its formal war zones list, participants noted a sharp rise in carrier inquiries and premium quotes.
Market insiders say the price of a seven-day war risk policy for vessels calling at Israeli ports has tripled in recent weeks, reflecting direct threats from Iran and its proxies. Some syndicates reportedly demand special clauses limiting coverage to non-combat zones.
Hutcherson concluded that โwar risk cover, once a niche product, is re-emerging as a critical discussion point.โ He urged brokers to update client risk assessments and to prepare for further premium volatility if the crisis deepens.
This article is based on verified information from GlobalDataโs 2025 UK Broker Insurance Survey and Reuters reporting on war risk insurance costs.