Several marine insurance providers have received a notice of cancellation from their reinsurers in respect of war risks in the Indian Ocean, Gulf of Aden and Red Sea amid heightened security concerns and a series of recent vessel attacks in the region.
Escalating developments in the Red Sea had significantly increased geopolitical and operational uncertainty.
In light of these concerning developments in the area, Skuld has received a notice of cancellation from its reinsurers in respect of certain commercially reinsured war risks, prompting the association to issue a corresponding notice to assureds.
Except Skuld and West of England P&I, several marine insurers issued notices of cancellation-war risk on August 12.
“To all fixed premium assureds, including fixed P&I, charterers, offshore, yachts, yacht crew liability, and optional covers, where cover is extended to include war risks,” Skuld said in its circular on Wednesday.
The notice will take effect from 00:01 hrs GMT on August 16, 2026.
It replaces and supersedes any other terms relating to the relevant war risks agreed in individual certificates of insurance or confirmations of cover, and fully replaces the general notice issued by the association on February 17, 2026.
Skuld said it applies to war risk cover only. All other terms of cover remain unchanged, and the position in respect of any other area currently restricted or excluded under the relevant policies is unaffected.
The notice does not affect mutual P&I and FD&D cover, and the Excess War Risks cover afforded to assureds with mutual P&I Cover.
Accordingly, with effect from August 16, war risk cover for assureds entered for risks will automatically terminate in respect of assureds trading to, from, through, or being within the territorial waters of the following countries or areas (including any port area that at the date of this notice constitutes part of such a country or place however it may hereafter be described):
Indian Ocean, Gulf of Aden and Red Sea
The waters enclosed by the following (the boundaries):
a) on the northwest, by the Red Sea, south of Latitude 25°30’N
b) 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
c) 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
d) 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.
West of England P&I also received a notice of cancellation and immediate reinstatement from its reinsurers in respect of war risks liabilities arising within Indian Ocean, Gulf of Aden and Red Sea waters.
The notice of cancellation is hereby given that, with effect from 72 hours after 00:00 hrs GMT on August 12, 2026, the following exclusion will apply from 00:01 hrs GMT on August 16, 2026, in respect of war risks coverage as set out in the rules of the association and/or terms of entry on all non-mutual business including but not limited to charterer’s liability cover, fixed premium owners cover, non-poolable extended covers to mutual entries and fixed premium P&I cover.
According to marine insurer West, the updated excluded areas have been determined as follows:
Indian Ocean, Gulf of Aden and Red Sea
The waters enclosed by the following (the boundaries):
a. on the northwest, by the Red Sea, south of Latitude 25°30’N
b. 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
c. 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
d. 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 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.
