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conflict, sanctions regimes, and security threats. As a result, underwriters must look beyond maritime operations and incorporate geopolitical analysis into their risk models. War risk insurance, once considered a niche product, has become far more central and widely applied.Catastrophic cover has long been part of the market, typically in relation to natural events such as hurricanes. Today, however, the concept is being extended to geopolitical corridors, such as the Black Sea, the Red Sea, and the Persian Gulf. Pricing, once relatively static and vessel-based, has become more dynamic. It is now often calculated per voyage, based on specific routes, with exposure reassessed each time a vessel enters a high-risk area.This shift has significant implications for underwriting. Traditional actuarial models are increasingly supplemented by real-time geopolitical intelligence and vessel tracking. Underwriters are modelling a wide range of scenarios, including potential escalation, blockades, and sanctions. Political risk analysis, once peripheral, is now central to decision-making.Historically, underwriting relied heavily on data such as loss history, vessel specifications, and stable, uncontested trade routes. Today, insurers must incorporate real-time intelligence, including military activity, sanctions developments, port security conditions, and advisories from governmental and defence authorities. Risk assessment has therefore become more dynamic, short-term, and responsive.Importantly, insurers must also consider indirect consequences of geopolitical instability. Rerouting vessels to avoid conflict zones can lead to delays, longer voyages, and increased exposure to machinery breakdown, adverse weather, and crew fatigue. Cargo deterioration, spoilage, and contractual penalties for late delivery further complicate the risk landscape. These factors often raise complex coverage questions, particularly around exclusions and policy validity. As a result, insurers are becoming more closely involved in operational decisions, influencing route planning, onboard security measures, and reporting requirements.Aggregation risk is another growing concern. Geopolitical events can lead to clustered losses %u2014 for example, multiple vessels affected within a single corridor or widespread disruption from port closures impacting numerous insured cargoes. Inflation must also be taken into consideration, with the current situation in the Middle East driving up energy prices, which in turn impacts many areas, including the cost of losses, repairs, and replacements. Sanctions, often a direct consequence of geopolitical conflict, are now a critical component of underwriting. Insurers must navigate increasingly complex compliance requirements, including analysing vessel ownership structures, cargo origin and destination, and tradMay 2026 269