Allianz SE, the global insurer, has warned that the insurance industry faces significant claims for ships damaged during the Iran conflict, as vessels and cargo with a combined value of $125 billion remain trapped in the Persian Gulf as of mid-June 2026. The estimate is drawn from Allianz's own analysis; the insurer did not provide a figure for total expected claims. The types of vessels affected span container ships, bulk carriers, and oil tankers — assets struck by drones and missiles during the conflict. Regis Broudin, global head of marine claims at Allianz Commercial, identified loss of life, vessel damage, and cargo damage as the primary drivers of claims to date. Marine war risk insurance — specialist cover protecting vessels against damage caused by armed conflict, mines, and similar perils — has seen premiums surge dramatically. Some vessels are paying more than $1 million per voyage to enter or exit the Strait of Hormuz. While the premium surge represents revenue for underwriters, it is offset by the elevated frequency of drone and missile incidents that are generating the claims Allianz has flagged. On the operational side, the International Maritime Organization has announced an evacuation plan backed by the US and Iran for more than 11,000 seafarers stranded in the Persian Gulf, with those individuals beginning to exit through the Strait of Hormuz. This development provides some relief but does not resolve the broader claims environment, as the vessels themselves remain at risk pending full navigation resumption. VLCC (very large crude carrier) rates through Hormuz have risen to near $470,000 per day for fixtures transiting the waterway.
Why this matters
A $125bn exposure figure across trapped vessels and cargo creates a complex multi-jurisdictional claims environment touching marine insurance, war risk underwriting, and cargo liability simultaneously. For London-market marine law practices — given that Lloyd's of London and the International Underwriting Association remain the dominant war risk insurance markets globally — this is a significant source of claims instructions. The interaction between war risk policies and standard hull and machinery cover (which typically excludes war perils) will require careful policy interpretation work as claims are presented. The Allianz warning also signals that P&I clubs (protection and indemnity mutual insurers covering third-party liability) will face parallel claims for crew welfare, collision, and pollution incidents arising from the conflict.
On the Ground
On a marine war risk claims matter, a trainee would assist with cross-border legal opinion coordination — instructing local counsel in relevant flag-state and port-state jurisdictions to advise on applicable maritime law — and would prepare sanctions screening memos to ensure that vessels, cargo owners, and counterparties are not subject to residual Iran-related sanctions restrictions before claim payments are processed. They would also assist with chronology preparation mapping the sequence of individual incident reports against policy coverage periods.
Interview prep
Question you might get
“How do war risk insurance policies interact with standard hull and machinery cover when a vessel is damaged by a drone strike, and what coverage disputes might arise in the Hormuz claims environment?”
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