The London marine insurance market has broadened the high-risk area in the Red Sea amid a surge in attacks on commercial ships, according to a statement issued by the Joint War Committee on Monday. This expansion comes as the guidance from the Committee, which includes syndicate members from the Lloyd's Market Association (LMA) and representatives from the London insurance company market, is closely followed and impacts underwriters' considerations on insurance premiums.

London Marine Insurers Widen High-Risk Zone in Red Sea as Attacks Surge https://t.co/ePcTuLnJBf

— Tom Craig (@LTDManagement) December 19, 2023

The decision to widen the high-risk area in the Red Sea reflects the increasing threats faced by commercial ships in the region. The Joint War Committee's guidance is crucial for insurers as it helps them assess the level of risk and determine the appropriate insurance premiums for ships operating in these waters. This move by the London marine insurance market highlights the proactive approach taken to address the evolving security landscape in the Red Sea. The Committee's decision is expected to have a significant impact on the insurance industry and the shipping companies that rely on marine insurance for their operations in the region.