War-risk premiums jump after Houthi blockade; Red Sea insurance costs rise to ~0.75%
On 21 July 2026, insurers raised indicative Red Sea war-risk premiums to about 0.75% of a ship’s value, up from roughly 0.3% before the Houthi maritime blockade—adding hundreds of thousands of dollars to insurance costs on a typical seven-day voyage and increasing the cost of shipping through the route.
The desk brief
On 21 July 2026, insurers raised indicative Red Sea war-risk premiums to about 0.75% of a ship’s value, up from roughly 0.3% before the Houthi maritime blockade—adding hundreds of thousands of dollars to insurance costs on a typical seven-day voyage and increasing the cost of shipping through the route.
Higher war-risk premiums and continued Houthi attacks that have reduced traffic through the Suez–Red Sea corridor raise freight and insurance bills for ships servicing East African and North African importers. This can increase landed fuel and consumer goods costs and pressure short-term external accounts for port hubs such as Djibouti (DJI) and Egypt, depending on the duration of route diversions and insurers’ pricing decisions.
Monitor insurer updates to war-risk premia and vessel traffic through Bab el-Mandeb over the next month.
Sources & verification
Developing storyFurther independent confirmation is required.
- Red Sea War Insurance Costs Rise After Houthi Blockade, Sources Sayinsurancejournal.comSource published (opens in a new tab)
- Red Sea Crisis 2026: Houthi Attacks & Shippingarmedconflicts.orgSource published (opens in a new tab)
Public references supporting this brief.