Norway-based marine insurer Skuld said that it was following closely the concerning developments in Iran and the wider Arabian/Persian Gulf, which had resulted in “a materially heightened level of geopolitical and operational uncertainty”.
Skuld said that it was “already evident that reinsurers’ appetite for war‑risk exposure is tightening, and in practical terms, it will result in reinsurers withdrawing capacity at short notice”.
Against this backdrop, Skuld decided to issue the Assureds with a notice of cancellation of the War Risk Cover.
- Owners’ Fixed P&I Terms & Conditions: Cancellation clause to the Cover Extension for War (Primary / Excess Hull Value) Risks in the Certificate of (Re)insurance
- Charterers’ Cover Terms & Conditions: Clause 26.4.3.
- Offshore Terms & Conditions Appendix 3, Termination clause, paragraph 1
- Yachts Terms & Conditions Clause 58.3
- Yacht Crew Liability Terms & Conditions Clause 40.3
- Optional Covers Terms & Conditions: Clause 4.1.1
Notice of Cancellation was given effective from Sunday March 1st and taking effect 72 hours after 00:00 hrs GMT (Midnight) on the day Notice is given: 5 March 2026.
Upon expiry of the notice at 00:00 hrs GMT (Midnight), 5 March 2026, the War Risk cover for Assured(s) entered for risks under the above-referenced Terms & Conditions will be terminated automatically for the Assured(s) trading or being within the territorial waters of any of the following countries or places (including any port area that at the date of this notice constitutes part of such a country or place however it may hereafter be described):
- Iran and Iranian waters including coastal waters up to 12 nautical miles offshore
- Persian/Arabian Gulf and adjacent waters as defined.
Definition
Persian/Arabian Gulf and adjacent waters including the Gulf of Oman and waters west of the line from Oman’s territorial limit off Cape al-Ḥadd at 22°42.5’N, 59°54.5’E northeast to the Iran-Pakistan border at 25°10.5’N, 61°37.5’E
The Notice of Cancellation applies to all persons or companies named as Assureds and/or Co-assureds in the P&I Certificate(s) of Insurance (or – where applicable – Cover Note(s)). If the above-referenced policy is a reinsurance, the terms “Assured” and “insurance” shall be deemed to be amended to read “Reassured” and “reinsurance” respectively.
The Notice of Cancellation applies to War risk cover only; all other terms of the cover remain unchanged. This Notice does not alter the position of any other area currently restricted or excluded under respective policies.
The Notice does not affect mutual P&I and FD&D cover and the Excess War Risks cover afforded to Assureds with mutual P&I Cover.
Skuld president and CEO Ståle Hansen said that “we are working on the details of the buy-back option reinstating the cover. Please contact your underwriter in Skuld for further details”.