War risk insurance

You mentioned that you got insurance.

Who provided that? That's war risk insurance.

Who provided it? And how easy is it to get that? Because I can see you've got high electricity prices here.

You've got an extreme urge to do things quickly.

And we have seen increased availability coming from international financial institutions like the World Bank Group through their MIGA program, but also specific European countries, governments providing it to their investors or whenever the sponsor is acquiring equipment purchasing equipment from their country of operations, then you can apply and get this insurance.

MEGA is part of the World Bank Group.

I don't know what MEGA stands for, but I've come across it as being a provider of foreign exchange risk insurance, but not bombs and bangs, war risk insurance.

But have they expanded to do that?

[upbeat music]

Today we're talking about the Straits of Hormuz and the impact of the Iran conflict on war risk coverage, premium volatility, global trade, the vessel security, and crew welfare.

I'm Chris Morrow, Managing Director of Marine North America at Willis Marine.

And today, I have the pleasure to be joined by Charlie McCammon, Senior Director of Marine North America, and James Reason, Head of Hull Marine GB.

There is still elements of competition, albeit, um, it's, it's still quite cautious at times.

Uh, but it, it is functioning.

It sounds as if, I mean, we lived in a world where war risk, uh, was, dare I say, niche, uh, and, and a bit specialized in its nature.

Has it become a mainstream commercial necessity, James? It sounds like that's where, uh, you were leading to and, and what we've been seeing.

So that's something we are, we are looking into.

The second type of product we develop, which is not technically a war insurance, but very, I mean, economically is very close to, is, uh, the fact when, um, that we have-- we are developing when in our portfolio risk sharing some, uh, what we call an, uh, enterprise and security enhancement, where we can...

If we finance an investment for a company and then this investment is destroyed-

Mm-hmm