News - Yemen: The cost of insuring a ship through the Red Sea has more than doubled since the start of September and some underwriters are pausing cover as the risk of attack from Yemen's Houthis on commercial vessels increases, industry sources said.

The industry sources, speaking on condition of anonymity, said additional war risk premiums, paid when vessels sail through the Red Sea, were quoted up to 2% of the value of vessel from 0.7% at the start of September and after the attack on the Greek operated Sounion tanker, which was on fire for weeks.

"Currently, we are seeing premiums as high as 2% on vessel value for a single Red Sea transit amid fluctuating insurer appetite," said Louise Nevill, UK CEO, marine, cargo & logistics, with broker Marsh.

The Houthis have said they will attack ships with links to the UK, the United States or have called at Israeli ports, although other vessels have been in the firing line, adding to dangers and also the costs involved.

"A lot of the smaller insurers are no longer prepared to underwrite Red Sea war coverage," said David Smith, head of marine with insurance broker McGill and Partners.

"It’s the first time I've seen underwriters just say no."

Insurance industry sources said there was still some cover available but the costs were rising.

"There is a lot of selection by those still willing to write ships," an underwriting source said, suggesting insurers were becoming increasingly cautious and selective. "Ships that are probable targets for attack are now struggling to find cover."

The Sounion, which was struck on Aug. 21 and laden with about one million barrels of crude oil, was towed without any oil spill, the EU naval mission said on Monday.

There have been no claims so far on the Sounion, with the vessel's value estimated at $80 million, three sources said.

They added that the war insurance policy was provided by a consortium led by underwriter Brit. The consortium of underwriters also included Antares, Iquw, Hamilton, Westfield and Aspen.

Aspen and Brit, a unit of Canadian insurer Fairfax, both declined to comment. Antares, Iquw, Hamilton and Westfield did not respond to a request for comment.

In recent months, the Yemeni Armed Forces have achieved significant victories against the ships of the American, British, and Israeli triad. These operations led to the declaration of the bankruptcy of the Um Rashrash port, also known as Eilat, after ships failed to reach it. Additionally, these operations forced the US aircraft carrier Eisenhower to flee the Red Sea, followed by the Roosevelt, and resulted in the sinking and damaging of dozens of ships.

This achievement adds to the Yemeni Naval and Armed Forces record, which surprised many observers, as Yemen had not previously been considered a naval power.

The Yemeni Armed Forces have vowed to keep up their operations as long as the Israeli regime sustains the war and a simultaneous siege that it has been enforcing against the Palestinian territory.