Written Reply to Parliamentary Question on Impact of Houthi Attacks on Marine Insurance Premiums

Mr Shawn Huang Wei Zhong asked the Minister for Transport 

a.     whether there are any projections on how the Houthi attacks have a direct impact on the cost of marine insurance premiums, particularly (i) hull insurance (ii) cargo insurance and (iii) protection and indemnity insurance; and 

b.     whether there are any discussions or collaborations with international bodies to address security challenges and their effects on marine insurance.

Reply by Minister for Transport Chee Hong Tat:

1.     The Houthis’ attacks on vessels in the Red Sea have led to increased risks for vessels plying the region and increases in marine insurance premiums. According to industry reports, war risk insurance premiums have risen from under 0.1% of the value of the insured vessel prior to the Houthis’ attacks, to about 0.5% to 1.0% of the vessel’s value as of February 2024. 

2.     The Maritime and Port Authority of Singapore and other agencies will continue to monitor the developments in the Red Sea region closely, including the impact on marine insurance.