Maritime Cyber & Insurance Risk Brief

“Rising War-Risk Premiums and the Need for Operational Cyber Resilience”

Recent geopolitical tensions in the Middle East have highlighted a critical shift in maritime risk management: insurance markets are now factoring cyber and electronic disruption risks into underwriting decisions.
For shipowners operating in high-risk maritime regions such as the Strait of Hormuz, the ability to demonstrate operational cyber resilience is rapidly becoming as important as physical vessel protection.

1. Market Situation
   Recent reporting from TradeWinds indicates that marine insurers have begun tightening war-risk coverage following escalating tensions in the Gulf region.

Key developments include:

• Withdrawal of certain war-risk insurance policies
• Significant increases in war-risk premiums
• Expansion of designated high-risk maritime zones

These developments directly affect vessel operability, financing, and chartering. Insurance availability has effectively become a gatekeeper of maritime operations.

2. Emerging Risk Drivers
Beyond physical attacks, insurers are increasingly assessing non-kinetic maritime risks, including:

Electronic Warfare Risks

• GNSS / GPS jamming
• AIS spoofing
• Satellite communication interference

Cyber Risks

• Shipboard IT system disruption
• Remote access compromise
• Operational technology (OT) network exposure

These disruptions can lead to:

• Navigation errors
• Collision risks
• Environmental incidents
• Port operation delays

As a result, cyber resilience is becoming a core component of maritime risk evaluation.

3. Why Technology Alone Is Not Enough
Many cyber security strategies focus on deploying advanced technical solutions.

However, shipboard environments present unique challenges:

• Legacy operational technology systems
• Limited satellite connectivity
• Long asset lifecycles
• Crew-dependent operational procedures

Therefore, effective protection depends less on technology and more on operational readiness and system resilience.

4. Operational Cyber Resilience: Key Capabilities
 Shipowners should focus on demonstrable operational controls, including:

Network Segmentation
Clear separation between IT, navigation systems, engine control systems, and crew networks.

Controlled Remote Access
Vendor maintenance connections governed by approval workflows and monitored access sessions.

Navigation Contingency Procedures
Bridge teams trained to operate safely during GNSS disruption scenarios.

Incident Logging and Evidence Collection
Operational logs enabling post-incident verification and insurance claim support.

5. Strategic Implications for Shipowners
As underwriting practices evolve, insurers are increasingly evaluating cyber resilience through questions such as:

• Is the vessel network architecture segmented?
• Are remote connections securely managed?
• Are cyber incident response procedures established?
• Can operational evidence be produced after an incident?
• Shipowners capable of demonstrating operational cyber resilience may benefit from:
  - improved insurance underwriting outcomes
  - enhanced operational reliability
  - reduced cyber and electronic warfare exposure

Conclusion
The maritime risk environment is evolving rapidly.
Cyber and electronic disruption risks are no longer purely technical concerns — they now influence insurance availability, operational continuity, and financial exposure.

For shipowners navigating high-risk maritime regions, the key question is

no longer:
“Do we have cybersecurity technology?”
but rather:
“Can our vessels continue operating safely when systems are disrupted?”

That capability defines Operational Cyber Resilience