Middle East conflict tests global shipping, London insurance market heats up.

Affected by the situation in the Middle East, shipping through the Strait of Hormuz is almost suspended at the moment, impacting the global shipping system. The insurance market is the most sensitive risk "thermometer." As one of the global shipping insurance pricing centers, the rate changes in the London insurance market have become an important window for observing global energy and supply chain security. The London insurance market accounts for about 40% of the global market share in the field of shipping, energy, and aviation insurance, with Lloyd's being the most famous. The head of Lloyd's introduced that this year, before the US launched airstrikes against Iran, the general quotes from shipping insurance brokers and the London market were around 0.2% to 0.3% of the vessel value. After the conflict escalated, insurance costs quickly increased. The head of Lloyd's Marine and Aviation Business in the UK stated: "The specific increase in ship insurance premiums depends on the type of vessel and specific circumstances, but media reports suggest premiums have increased by about 1% to 3%. However, insurance costs are only a small part of shipping operating costs. Shipping companies also need to consider freight rates, which have already increased by 11 to 12 times, as well as fuel costs and delays caused by ships having to navigate around the conflict zone."