Global and domestic reinsurers, including GIC Re, have officially cancelled “War Risk Cover” for vessels operating in the Persian Gulf and Red Sea. The Strait of Hormuz is now classified as a high-risk zone, meaning insurers will only provide coverage on a case-by-case basis with massive premium hikes. This lack of insurance is forcing many Indian-flagged vessels to remain at anchor or reroute, significantly increasing the financial burden on shipping lines and cargo owners.