Insurers Cut Rates for Cargo in Gulf
Insurers on Tuesday slashed by up to 33% their rates for insuring cargoes in the Persian Gulf, following the announcement of a firm date for a cease-fire between Iran and Iraq.
The cuts are the first since the possibility of a cease-fire between the two countries was announced three weeks ago. United Nations Secretary-General Javier Perez de Cuellar on Monday announced that the truce would begin Aug. 20.
The Lloyd’s of London insurance market and the Institute of London Underwriters announced that the insurance rate for cargoes going to most places in Iran was cut immediately to 0.375% of the value of the shipment, from 0.5%.
The rate for insuring oil going to both the northern and southern areas of the gulf was cut to 0.25% from 0.375% of its value.
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