The Indicator from Planet Money Will Trump’s shipping insurance plan work?
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Mar 10, 2026 
Maximilian Hess, a political risk consultant who advises on war insurance and maritime risk, and Rachel Siemba, a security-focused economist at CNAS, unpack why over a thousand ships are stuck near the Strait of Hormuz. They explore surging war-insurance premiums, how reinsurance proposals aim to lower costs, coverage gaps like crew and environmental risks, and the practical limits of using a DFC backstop.
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Insurance Is Creating A Shipping Parking Lot
- Insurance costs are a key reason over a thousand vessels are stuck west of the Strait of Hormuz.
- War insurance premiums jumped from basis points to double-digit percent, turning transits unaffordable and creating a shipping 'parking lot'.
War Insurance Covers Missile Risk And Has Skyrocketed
- Political risk or 'war' insurance covers missile strikes and detention that standard policies exclude.
- Rates surged so a $100 million cargo saw daily war-premium jump from ~$250,000 to at least $1 million, deterring legitimate shippers.
Shadow Fleet Continues Uninsured Transits
- Some ships still transit uninsured as part of a 'shadow fleet' engaged in illicit trade and sanctions evasion.
- Those vessels accept higher operational risk and evasive tactics while legitimate carriers wait for coverage or safety.