{
  "id": 6609131,
  "title": "Rising shipping insurance costs prompt GCC importers to adapt transit routes",
  "url": "https://urgent.news/2026/09/10/rising-shipping-insurance-costs-prompt-gcc-importers-to-adapt-transit",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-10T16:19:00.000Z",
  "source": {
    "name": "Gulf Times Business",
    "slug": "gulf-times-business",
    "url": "https://www.gulf-times.com/article/732986/business/rising-shipping-insurance-costs-prompt-gcc-importers-to-adapt-transit-routes"
  },
  "original_language": "en",
  "account": "Geopolitical tensions in the Middle East have caused shipping insurance rates in the Strait of Hormuz to skyrocket, up to five times their pre-war levels, according to Emir Mujkic, a lead analyst at S&P Global Ratings. This has forced GCC importers and retailers to reconsider their shipping routes in an effort to reduce both freight and risk costs. Mujkic explained that while initial rate spikes saw increases of five to 12 times immediately after conflict began, current quotes have stabilized at much higher levels. This surge in insurance and maritime risk coverage is prompting businesses in the region to look for alternative ports of entry to keep inventory flowing while keeping expenses in check. For instance, some car dealers in the UAE are now importing vehicles through ports like Jeddah instead of the Hormuz Strait, which boosts both freight and insurance costs. Beyond shipping changes, Mujkic noted that the heightened risk environment is also influencing property and casualty policies across the region. Previously, some companies had avoided war-related risk protection; however, now they are actively seeking it, driving underwriters to offer specialized add-ons for commercial, motor, and residential lines. These logistical challenges come alongside broader cost increases in the insurance sector, with motor premiums in markets like the UAE rising by an average of 20% following severe weather events in 2024. Annual medical claim inflation across the GCC remains high, ranging from 8% to 12%. Despite these hurdles, Mujkic maintained that the overall credit outlook for GCC insurance providers remains stable, supported by robust capital reserves built during recent profitable periods. He stressed that while rate increases have boosted profitability, they won't translate directly to profits due to rising claims and costs for insurers.",
  "summary": "Ongoing geopolitical friction in the Middle East has pushed shipping insurance costs through the Strait of Hormuz to roughly five times pre-war levels, prompting GCC importers and retailers to adjust ...",
  "key_points": [
    "Shipping insurance rates in Strait of Hormuz surged up to five times pre-war levels.",
    "GCC importers reconsider routes to reduce freight and risk costs.",
    "Alternative ports like Jeddah sought to keep inventory flowing and expenses in check."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}