War risks cover for vessels operating in a widened area of the Red Sea, Gulf of Aden and Indian Ocean is being withdrawn by two leading marine insurers after their reinsurers issued cancellation notices.

Gard P&I (Bermuda) Ltd is among the Gard group insurers affected by the move, which takes effect at 0001 GMT on August 16. Norwegian-based Skuld has issued a substantially similar notice to its fixed-premium assureds.

The action marks the second time this year that Gard and Skuld have withdrawn war-risk extensions after a reinsurance pullback. In March, the clubs cancelled certain cover for ships entering the Persian Gulf and Gulf of Oman as the conflict between the US/Israel and Iran escalated.

The latest move comes as security risks again unsettle Red Sea shipping. Reuters reported that Saudi oil tankers have increasingly switched off public tracking signals amid Houthi threats and attacks, while traffic through the Bab el-Mandeb Strait has fallen.

It also follows a gradual return by major container lines to Red Sea and Suez Canal routes. Maersk and Hapag-Lloyd said this week that another service would resume using the corridor, which many carriers had avoided in favour of the longer route around the Cape of Good Hope.

The affected area extends beyond the Red Sea exclusion previously applied by Gard, covering waters south of latitude 25°30’N in the Red Sea, the Gulf of Aden and a broad area of the western Indian Ocean. It includes key shipping routes near the Bab el-Mandeb strait, but generally excludes coastal waters up to 12 nautical miles offshore.

That coastal-water exception does not apply to the Bab el-Mandeb Traffic Separation Scheme, the specified Saudi Red Sea coast or the Yemeni coast.

Gard said its notice did not introduce a wholly new exclusion but expanded the Red Sea exclusion set out in a 2023 member circular. From August 16 it will automatically reinstate war risks cover for affected fixed-premium policies with the expanded territory excluded.

The change applies across a range of Gard products, including charterers’ P&I cover, traders’ cover, crew cover, carriers’ liability and other fixed-premium marine liability policies. It does not affect excess war risks cover provided to assureds with mutual P&I cover.

Skuld’s notice applies to its fixed-premium P&I, charterers, offshore, yacht and optional-cover assureds whose policies include war risks. The insurer said that cover would automatically terminate for vessels trading to, from, through or within the specified waters.

Unlike Gard, Skuld said it was still finalising a buyback option that would allow affected assureds to reinstate cover. Gard said its existing buyback solutions would be changed to reflect the wider area and that new terms were expected shortly.

Both notices leave other policy terms unchanged and do not affect mutual P&I and FD&D cover.