Skuld cancels war risk cover across parts of Red Sea, Gulf of Aden and Indian Ocean

August 13 ------ Skuld Club has cancelled certain war risk coverage in parts of the Red Sea, Gulf of Aden and Indian Ocean amid heightened security concerns and a series of recent vessel attacks in the region. The cancellation will take effect 72 hours after 00:01 GMT on August 16, according to an update issued by Skuld on 12 August.

The Club said escalating developments in the Red Sea had significantly increased geopolitical and operational risks. As a result, Skuld said its reinsurers had issued notice of cancellation for certain commercially reinsured war risks, prompting the association to issue a corresponding notice to assureds.

The move comes as shipping operators continue to face heightened security risks across key waterways in the region, with recent attacks adding to concerns over the safety of commercial vessels and crews.

Indian Ocean, Gulf of Aden and Red Sea

The waters enclosed by the following (the Boundaries):

• on the northwest, by the Red Sea, south of Latitude 25°30’N

• on the northeast, from the Yemen border at 16°38.5’N, 53°6.5’E to high seas point 14°55’N, 53°50’E

• con the east, by a line from high seas point 14°55’N, 53°50’E to high seas point 10°48’N, 60°15’E, thence to high seas point 6°45’S, 48°45’E

• and on the southwest, by the Somalia border at 1°40’S, 41°34’E, to high seas point 6°45’S, 48°45’E

excepting coastal waters up to 12 nautical miles offshore of territories which are wholly or in part within the Boundaries.

Skuld has clarified that the coastal waters exception does not extend to the Bab el-Mandeb Traffic Separation Scheme, the Saudi Arabian coast of the Red Sea within the defined boundaries, or the Yemeni coast.

The latest notice supersedes any previous provisions relating to the relevant war risks contained in individual certificates of insurance or confirmations of cover. It also replaces in full the General Notice issued by Skuld on February 17, 2026. The changes apply exclusively to war risk cover, with all other terms and conditions remaining unchanged. The position regarding any other areas already restricted or excluded under the relevant policies is also unaffected.

Skuld said the notice does not affect mutual P&I and FD&D cover, or the Excess War Risks cover provided to Assureds with mutual P&I cover.

Source: safety4sea.com