Brokerage firms report surge in insurance demand following ceasefire; Hormuz Strait remains a high-risk area

Golden Ten Data reported on April 9 that, according to brokerage firm McGill and Partners, following the ceasefire between the United States and Iran, shipowners are making a "large number" of insurance requests to transit the Strait of Hormuz. David Smith, the Head of Marine at the London-based company, stated that the increase in demand has also brought a "significant rate adjustment." He added that despite the ceasefire agreement, "the situation of war remains severe, and the Strait of Hormuz is still classified as an extremely high-risk area." Andrew James, Managing Director of Marine at Arthur J. Gallagher & Co, said: "The latest ceasefire news is a positive signal and is expected to ease passage conditions through the Strait of Hormuz and the wider region. It is still very early days, but underwriters have started to acknowledge the ceasefire and reduce rates on some risks." He added that insurers "will continue to exercise caution as they monitor how the situation develops."