War-risk insurance premiums for ships operating in the Red Sea and Gulf of Aden remain high but largely unchanged in recent weeks, as Yemen’s Houthi movement has not clarified whether it will suspend attacks following the Gaza ceasefire agreement, according to multiple market sources.
TradeWinds reported in October 2025 that underwriters have not adjusted rates since the ceasefire announcement, citing the absence of official communication from the Houthis on maritime hostilities. Premium levels, insurers said, continue to reflect elevated caution rather than active escalation.
According to Reuters and FT, premiums for vessels transiting through the high-risk zones have ranged between 0.6% and 2% of hull value since mid-2025, depending on route, flag, and ownership. Rates briefly surged during the July 2025 Houthi attacks but have since stabilized, remaining well above pre-conflict averages.
Lloyd’s List and Insurance Edge noted that the stability does not imply de-escalation. Some underwriters maintain premium surcharges above 1% for tankers linked to U.S. or Israeli interests, while vessels taking the Cape of Good Hope detour continue to face longer voyages and higher fuel costs.
Despite the Gaza ceasefire, maritime insurers say that a tangible reduction in regional risk would require “verified evidence of attack suspension” rather than political statements. Until such confirmation is issued, the war-risk market is expected to retain current pricing levels across most Red Sea corridors.
In the meantime, shipowners remain cautious. Many operators continue to reroute tonnage away from Bab-el-Mandeb, citing both ongoing safety concerns and the potential for sudden escalation if Houthi activity resumes.
Overall, the Red Sea corridor remains one of the most expensive maritime insurance zones worldwide, with the global market awaiting clear signals from the Houthis before adjusting rates further.
