Industry Faces Reality of Iraq War
Thursday, March 20th, 2003 Marine PropertyAs war began last night with U.S. air attacks on selected targets in Baghdad, that apparently just missed Saddam Hussein, the insurance industry nervously prepared for the global fallout. Commercial insurers warned their clients — mainly oil tanker and cargo shippers and some airlines — that coverage for losses in the Middle East would be cancelled within 48 hours of the commencement of hostilities. While the “real” war has yet to begin, most indications are that it’s only hours away, which would effectively cancel the coverage by Saturday. New coverage can be negotiated, and, depending on what happens in the first few days of the war, probably will be. However, to secure it for the area during the hostilities much higher rates will be demanded for cargo coverage in general, and for tankers in particular.
