Following recent attacks by Houthi rebels on commercial shipping in the Red Sea and Saudi Arabian Ports the reinsurance market has amended the Red Sea exclusion area that was first introduced on 20 February 2024. This impacts all P&I Insurers.
The area impacted is as below and the exclusion area comes into effect at 00.01 on 16 August 2026 GMT.
Indian Ocean, Gulf of Aden and Southern Red Sea Excluded Area
No cover is provided for liabilities, losses, damages, costs or expenses otherwise covered under a policy of Insurance that occur within the waters specifically mentioned below.
Indian Ocean, Gulf of Aden and Red Sea
The waters enclosed by the following (the Boundaries):
- on the northwest, by the Red Sea, south of Latitude 25°30’N
- on the northeast, from the Yemen border at 16°38.5’N, 53°6.5’E to high seas point 14°55’N, 53°50’E
- on the east, by a line from high seas point 14°55’N, 53°50’E to high seas point 10°48’N, 60°15’E, thence to high seas point 6°45’S, 48°45’E
- and on the southwest, by the Somalia border at 1°40’S, 41°34’E, to high seas point 6°45’S, 48°45’E
excepting coastal waters up to 12 nautical miles offshore of territories which are wholly or in part within the Boundaries.
The coastal waters exception above does not include the Bab el-Mandeb Traffic Separation Scheme, the Red Sea coast of Saudi Arabia that lies within the Boundaries, or the Yemeni coast.
Changes
There are two principal changes:
- The exclusion area in the Northern Red Sea is extended to Latitude 25°30’N and now includes the port of Jeddah;
- A new sentence had been added clarifying that the exception areas for 12nm does not include certain areas in the Red Sea and Yemeni Coast; most ports in these areas were subject to the Hull JWC Listed area summary in any event but it now brings War AP’s within Liability policies.
Procedures
Assureds or their brokers are reminded of the procedure for purchasing additional war risk cover:
- Write to their normal contact in the Underwriting department prior to the vessel entering the excluded zone providing full vessel details including name, Ownership structure, flag, IMO, P&I Club and current position;
- The Club will specifically quote for the transit or port call;
- If accepted, the Club will confirm cover and issue an endorsement and an invoice;
- The invoice will need to be paid within seven (7) days to the bank account shown on the invoice.
Queries
Please contact your usual contact in the Underwriting department.
