Reinsurers triple insurance costs after US attack

WAR ZONE »— ON-ALERT

- MIHIR MISHRA & SAIKAT DAS

LONDON-BASED REINSURERS of ships are cancelling their coverage of war risk and demanding 200% more to reinstate policies, according to people familiar with the matter, after a US submarine sank an Iranian warship off Sri Lanka, amplifying risk perceptions.

Rates for shipping lines to buyback this cover that usually climb as much as 50% in wartime have instead tripled in some cases — rising to $750,000 per vessel from $250,000, the people said, asking not to be identified because the information is private.