The New Maritime Insurance Stack: War-Risk, Cyber and Parametric Weather. What you need to know in Under 5 Minutes
November 13, 2025
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Modern voyage risk is a stack, not a single policy. Detours, cyber events, and severe weather hit cashflow in different ways, so smart operators layer war-risk, cyber, and parametric covers to keep routes, systems, and schedules resilient. This guide gives you the essentials in minutes so you can brief a broker and move.
War-Risk
Status: active on listed routes
AP applies only to the days inside the listed area
War risk sits on top of hull during transits in named high-risk areas. It is priced for short exposure windows, so clear routing and documentation keep costs predictable and claims straightforward.
Coverage at a glance
- Responds to war, piracy and terrorism exposures while inside listed areas defined by market circulars.
- Attached to hull via an additional premium for a defined time window tied to the voyage plan.
- Rates can improve with approved routing, escorts and timely reporting.
Pricing in practice
AP ≈ Hull value × AP% × (days in zone ÷ 7)
- Main levers: days on risk, vessel profile, security posture, documentation quality.
- Ask your broker about refunds on deviation and evidence required for approvals.
Execute in three steps
1
Plan and declare the route. Include ETA windows, listed-area entry/exit and security SOPs.
Sanctions screening and any STS details prepared in advance.
2
Transit with clean evidence. Keep AIS/track logs, incident reports and required check-ins.
Use steady steaming and buffers to reduce exposure days.
3
File fast if needed. Submit logs, approvals and clause match to the sailed route.
Claim delays often trace to missing or mismatched documentation.
Broker prep checklist
- Next 90-day legs with days inside listed areas and contact tree for the window.
- Routing and security SOPs, reporting instructions, sanctions workflow.
- Fixture clauses aligned to the route you intend to sail.
Confirm current listed areas, terms, exclusions and pricing with your broker. This is a structure guide, not a quote.
Cyber
Status: tighter proof-of-controls at bind and claim
Pricing tracks controls: MFA, backups, EDR, segmentation
Controls verified → broader scope, lower retention
Gaps or no logs → higher retention, narrower scope
Cyber policies respond to incidents that disrupt systems or data and, with the right endorsements, some operational technology on board. Pricing and retentions now hinge on a short list of controls. The better the controls and evidence, the cleaner the terms.
Coverage at a glance
- Incident response, data restoration and business interruption for IT; some policies extend to specific OT systems by endorsement.
- Common exclusions include state-backed operations and warlike events. Scope varies by market and wording.
- Vessel and vendor access are in scope if they are part of your declared environment and controls.
Pricing drivers and proof
- MFA on users and vendors, tested offline backups, and endpoint detection on laptops and servers.
- Network segmentation between shore IT and vessel OT with monitored gateways.
- Incident playbook with roles, and tabletop drills logged in the last twelve months.
Execute in three steps
1
Baseline controls and document them. List MFA, backups, EDR, segmentation and vendor access rules.
Keep screenshots and configs as evidence for binding and claims.
2
Monitor and log. Centralise alerts and keep access logs for shore and ship connections.
Logs and timelined actions are often the difference in a clean claim.
3
Run drills and update clauses. Test the playbook and align contracts with minimum security baselines.
Vendors should meet the same MFA and logging standards you do.
Broker prep checklist
- Written summary of MFA, backups, EDR, segmentation and last drill date.
- List of critical shipboard systems in scope and how they are segmented.
- Vendor access policy and how you monitor remote connections.
Confirm scope, exclusions and OT endorsements with your broker. Keep evidence of controls on file; it speeds binding and claims.
Parametric Weather
Status: pays on trigger, fast cashflow
Pick a threshold and box; payout is automatic when the trigger is met
Lower trigger → higher premium, more hits
Higher trigger → lower premium, fewer hits
Index locked at bind for fast settlement
Parametric policies pay when a defined weather threshold hits inside your box. You choose the trigger and the payout curve. There is no loss adjustment step, so cash arrives quickly and predictably when the trigger fires.
Coverage at a glance
- Triggers such as wind ≥ X knots, significant wave height ≥ Y m, or a named-storm track within a radius.
- Best for voyage delay cashflow, port closures, offshore windows and cargo care thresholds.
- Basis risk exists: a loss without a trigger, or a trigger without much loss. Calibrate to your real pain points.
Pricing in practice
- Premium reflects trigger probability, radius or box size, seasonality, chosen limit and payout slope.
- Lower thresholds or larger boxes cost more because they trigger more often.
- Agree the data source and coordinates up front for fast settlement.
Execute in three steps
1
Define the trigger and box. Pick thresholds that match your delay or abort criteria.
Example: wind ≥ 50 kn within 25 nm of berth.
2
Bind with the data source and payout curve. Confirm season dates and coordinates.
Choose flat payout or a ramp between T and T₂.
3
Monitor and, if triggered, receive payout automatically from the index.
Use funds to cover delay costs or re-deploy quickly.
Broker prep checklist
- Coordinates and radius, season window, and your operational thresholds.
- Desired limit and whether payout should be flat or ramped.
- Preferred index or data vendor the market accepts for your region.
This is a structure guide, not a quote. Confirm triggers, indices, exclusions and pricing with your broker.
Insurance Cost Sketch
Inputs are yours; math is transparent
War-Risk AP
Cyber Premium
Parametric Weather
Inputs
Results
AP cost (USD)
$0
Per day on risk
$0
As % of hull
0%
AP = max( Hull × (AP_rate% ÷ 100) × (Days ÷ Window) × (1 − Refund), Minimum premium )
AP is quoted per time window (often 7 days). Many markets apply minimum call premiums and documentation conditions.
Inputs
Results
Premium estimate
$0
Effective ROL
0%
Retention (USD)
$0
Premium ≈ max( Limit × (ROL% ÷ 100) × Control_factor, Minimum premium )
ROL varies by market and scope (IT/OT). Minimums and endorsements apply. Use your broker’s figures.
Inputs
Results
Premium estimate
$0
Expected payout
$0
Premium / Expected payout
0×
Single-trigger season: p from input or p = 1 − e−λ.
Flat: Expected payout = Limit × p; Premium ≈ Expected payout × Load.
Ramp: Expected payout = Limit × p × Ramp%; Premium ≈ Expected payout × Load.
If your wording allows multiple payouts, use broker models. This sketch assumes one payout per season.
Nothing here is a quote. Use broker-supplied AP rates, ROL, minimums and index probabilities. These tools only do the math transparently.
