GIC Re to Cease Marine Hull War Risk Coverage in High-Risk Zones Starting March 3

As per news reports, General Insurance Corporation of India (GIC Re), India’s largest reinsurer, has announced the withdrawal of marine hull war risk cover in select high-risk global regions. The move comes amid rising geopolitical tensions affecting key international shipping corridors. 

About the Announcement and the Company  

GIC Re has decided to withdraw marine hull war risk cover in several high-risk global regions, according to media reports citing an official notice issued by the company. The reinsurer issued a notice on March 1 stating that the withdrawal of cover would take effect from 1900 hours IST on March 3. 

GIC Re is India’s largest reinsurer, offering treaty and facultative reinsurance solutions to insurers in India and across international markets. Headquartered in Mumbai, it plays a pivotal role in strengthening the insurance sector by providing risk capacity and supporting large, complex exposures worldwide. 

Regions Affected and Scope of Withdrawal 

GIC Re will withdraw marine hull war risk cover from March 3 in high-risk regions like the Persian Gulf, Black Sea, Red Sea, amid rising geopolitical tensions. Under the notice, GIC Re will stop providing Marine Hull War Risk insurance for vessels operating in designated high-risk zones.  

These include parts of the Persian or Arabian Gulf and adjoining waters, the Gulf of Oman, certain areas around the Black Sea and Sea of Azov, waters connected to Russia, Ukraine and Belarus, along with selected stretches of the Red Sea, Gulf of Aden and the Indian Ocean. 

The restrictions also apply to countries subject to sanctions imposed by the United Nations, United Kingdom, United States or the European Union. Marine hull war risk cover protects shipowners against losses arising from war-related perils such as armed conflict, piracy and hostile acts.  

With this withdrawal, vessels entering or operating in the specified areas after the effective date may no longer be protected under GIC Re-backed war risk arrangements. 

Reasons and Industry Impact 

The move comes against the backdrop of escalating geopolitical tensions and heightened threat levels across critical maritime routes. These developments have substantially increased underwriting risks for global reinsurers. 

As a result, shipowners, insurers and brokers are likely to review their risk exposure and look for alternative war risk cover for voyages through the affected regions. Market participants may also encounter higher premiums and stricter underwriting conditions as reinsurers adjust their exposure to conflict-sensitive territories. 

Read More: IRDAI to Roll Out Major Insurance Reforms, Launch Bima Sugam Marketplace in 4–6 Months! 

GIC Share Price Performance  

As of March 02, 2026, at 10:30 AM, General Insurance Corporation of India share price is trading at ₹375.65 per share, reflecting a decline of 1.93% from the previous closing price. Over the past month, the stock has surged by 1.31%  

Conclusion 

The decision reflects rising geopolitical instability across major maritime corridors, increasing underwriting risks for reinsurers. Shipowners and insurers operating in affected zones will need to reassess coverage arrangements and may face higher premiums or stricter terms as global reinsurance markets adjust exposure to conflict-prone regions. 

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