Insurance costs for ships crossing the Strait of Hormuz and Bab al-Mandeb have risen sharply as war-related disruption reduces traffic and raises attack risk. S&P Global says premiums in Hormuz have climbed to 7.5%-10% of hull value.
Iran's Economy Ministry is exploring a Bitcoin-settled maritime insurance model for cargo crossing the Strait of Hormuz, potentially generating over $10 billion. Analysts express skepticism about its scalability and legal viability due to sanctions and Bitcoin's transparency.
The Indian government has launched a $1.5 billion Bharat Maritime Insurance Pool, backed by a $1.4 billion sovereign guarantee, to offer risk cover for Indian vessels on international routes, including war zones. This initiative aims to reduce shipping insurance premiums and guarantee coverage even when global insurers withdraw due to rising risks.
India launches Bharat Maritime Insurance Pool to reduce dependence on foreign insurers and bolster domestic maritime trade
