This interesting article points out how the nature and availability of insurance can be weaponized in wars such as Trump’s Iran action. If you have not been interested in maritime insurance before, you need to learn how it can work in such a dire situation as the Strait of Hormuz activities now.
It’s a war zone, to be sure. But many ships, shippers, and in fact countries, are dependent on passage. And they need insurance to do it.
Manipulating the insurance ecosystem is a potential way to shape the movement of ships in the Gulf of Hormuz or the Red Sea. It’s been used before, but we are now seeing novel approaches from the US government and from insurers.
Maritime shippers and operators will need to pay attention to this changing landscape.
By Bruce Randolph Tizes
Supply Chain and Logistics 