Global insurers have notified cargo ship operators that their coverage for wartime losses in the Middle East could be canceled within 48 hours of the start of war in Iraq.
Global insurers have notified cargo ship operators that their coverage for wartime losses in the Middle East could be cancelled within 48 hours of the start of war in Iraq.
The New York Times reported today that leading brokers are considering the cancellation of war coverage for cargo, which would apply to all commercial insurance policies.
According to the New York Times, brokers added that it was unclear whether the cancellation would extend to coverage provided by the US government to the US airline industry.
Andrea Jansz, analyst at the Willis Group said: "We may see something tomorrow."
Other brokers were reported as saying that the new prices could be as much as 50 times the prewar prices for cargo coverage. As a result, they said, most commercial air and sea traffic to the Persian Gulf region would probably be halted.
