According to David Smith, head of the maritime department at insurance brokerage firm McGill and Partners, the current war insurance rates offered by underwriters for ships in the Persian Gulf are as high as 3% to 6% of the ship's value, which is far higher than the normal level of 0.25% in peacetime. Smith said that the market generally believes that the current level of risk has reached its peak since the outbreak of this round of conflict. At the same time, insurance costs for Red Sea shipping have also risen sharply. As attacks on merchant ships by the Houthis in Yemen continue to escalate, war insurance rates for Red Sea ships have risen rapidly, and ships linked to Israel or Saudi Arabia have been hit most prominently. Smith pointed out that the current rate for ship war insurance in the Red Sea is mostly 0.3% to 1% of the ship price, but a month ago, the rate was still 0.1% or less.

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