Splash247: Pakistan ports removed from London war-risk list

Published by Splash247

Pakistan has been removed from the London marine insurance market’s list of areas exposed to elevated war, piracy and terrorism risks, potentially reducing the additional insurance costs attached to ships calling at the country’s ports.

The Joint War Committee deleted Pakistan from its Listed Areas in a circular this week, reversing its March decision to include the country.

The change covers Karachi Port, Port Qasim, Gwadar and Pakistan’s coastal waters, which were previously treated as presenting an enhanced risk for marine hull war insurers.

Ships entering a listed area can be required to notify insurers and negotiate additional war-risk cover or premiums before calling.

Removal from the list does not automatically cancel every surcharge, as individual pricing and coverage remain subject to negotiation between shipowners and underwriters. It nevertheless removes the London market’s formal designation of Pakistan as an enhanced-risk location.

Karachi Port Trust said the decision should reduce insurance and shipping costs and improve the competitiveness of Pakistani gateways.

The Joint War Committee comprises underwriting representatives from the Lloyd’s and International Underwriting Association company markets. Its Listed Areas are used by marine insurers when assessing war, piracy and terrorism exposure.

Pakistan was added to the list in March amid a broader expansion of designated areas covering the Gulf, Gulf of Oman, Indian Ocean, Gulf of Aden and southern Red Sea.

The latest review also amended the boundaries covering Saudi Arabia and the wider Gulf and Red Sea region, and changed Eritrea’s designation.