The London Market is continuing to provide cover for insureds affected by the ongoing Middle East conflict, according to representatives from the International Underwriting Association.

In a statement, chief executive of the IUA, Chris Jones, said insurance arrangements across the region had long reflected heightened geopolitical tensions but that coverage remains available across several lines of business.

“Prior to the commencement of the current hostilities, Iran and the wider Middle East was already an area of relative enhanced risk and insurance coverage in place will reflect this. IUA members are, however, continuing to provide cover for clients affected by the current hostilities in Iran across a number of lines of business,” he said.

“Most prominent is shipping in the Straits of Hormuz where trade has been halted, not by a lack of available insurance, but by obvious safety concerns. The market for marine war risks is operating in the manner we would expect, given the increase in threats to shipping and insurers are focused on ensuring clients can continue to access the cover they require.”

Jones added that, with the situation continuing to evolve rapidly, in-depth, real-time security advice is vital.

“The London Market’s joint marine committees are working with expert consultants to provide underwriters with the latest information. We welcome any initiative to improve the security situation,” he added. “Elsewhere, the London company market is also providing aviation cover to support flights transporting people away from the affected areas – both via existing flight routes and new repatriation operations. With airspace opening and closing, based on the assessment of aviation authorities, insurers are working with brokers, clients and third-party experts to closely monitor changes in risk.”

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