As the war in Iraq gathers pace, the price of insurance for ships and businesses in the region has doubled overnight, according to several Lloyd's figures.
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As the war in Iraq gathers pace, the price of insurance for ships and businesses in the region has doubled overnight, according to several Lloyd's figures.
Speaking to the New York Times, Ascot Underwriting chief executive, Martin Reith, said the cost of weekly war insurance for an oil tanker in Kuwait has doubled overnight to £127,000.
Miller Insurance Services director Jonathan Sale told the New York Times that the weekly premium to cover a professional worker in the Gulf jumped from £6300 yesterday to £12,780 this morning.
Sale added that the cost of weekly cover for a professional businessman affected by sickness or death caused by a nuclear, biological or chemical attack, "could easily rise to $50,000 [£31,900] for $1m [£639,000] in coverage" in the next few days.
The reason for the sharp short-term rise lies in the fact that coverage for cargo ships is sold in seven-day blocks, so that rates can be modified as conditions change.
