The innovative insurance solution offers coverage of up to US$50 million per insured vessel, with the highest coverage amount provided to date reaching $150 million. Specifically targeting risks in the Bab al Mandab Strait, the Red Sea, and the Indian Ocean—regions currently impacted by active conflicts—the facility marks a significant milestone in maritime risk management.
Howden said that this is the first insurance product designed specifically to safeguard cargo vessels operating in these high-risk zones, showcasing the firm’s proactive approach to addressing complex global risks and safeguarding international supply chains.
Since its launch, the new facility has garnered considerable interest, with Howden securing policies across four continents within the first month. The development offers a more efficient shipping route through the Red Sea and Suez Canal, bypassing the longer alternative of navigating around the Cape of Good Hope. Such a route extension typically prolongs a voyage from the Far East to Europe by two weeks and increases emissions by 70%.
Ellis Morley, associate director of cargo and commodities at Howden, highlighted the significant challenges posed by the conflict in the Red Sea region for clients with operations in the area.
“Vessels are seeking protection as they navigate this security hotspot, and we have worked with specialist marine underwriters to launch this facility, protecting cargo in the region up to a limit of $150 million per vessel. We are harnessing Howden’s collective expertise to offer a clear path forward and helping to find solutions to global supply chain pressures,” Morley said.
This initiative represents the most recent effort to address complex challenges in recent years. Previous initiatives have included arranging insurance for a United Nations-chartered vessel that transported grain from Ukraine to the Middle East and Africa in 2022, as well as facilitating insurance for a ship-to-ship transfer of crude oil from the FSO Safer, preventing a significant oil spill and environmental catastrophe.
Danny Whiteside, managing director and global practice leader for marine, cargo & logistics at Howden, emphasized the new facility as another instance of insurance serving as a positive force globally.
“Howden has accessed London’s specialist marine insurance market, and in doing so we’re helping to address the direct impact of the conflict in the Red Sea and helping our clients to chart a course through chaos,” Whiteside said.
