Major maritime insurance clubs will stop covering war risks for vessels entering the Persian Gulf starting Thursday. Seven of the 12 members of the International Group of Protection and Indemnity Clubs, including Gard AS, NorthStandard Ltd., and The Swedish Club, will terminate war-risk cover automatically for ships entering the region from midnight London time on March 5.

War-risk insurance protects shipowners from damages caused by war, terrorism, and piracy. The removal of this specialized coverage will likely reduce risk appetite for companies looking to load cargoes from within the Persian Gulf. The decision affects vessels entering the Persian Gulf, specific adjacent waters, or Iranian waters, while all other policy terms remain unchanged.

The International Group covers approximately 90% of the world's ocean-going tonnage through non-profit, mutual insurance associations. The affected adjacent waters include the Gulf of Oman and waters west of Oman's Cape al-Hadd, stretching northeast to near the Iran-Pakistani border. This move signals heightened concerns about maritime security in the region.