JLC Red Sea Notice

11/08/26

The Joint Liability Committee (JLC) has published JL2026-024, providing an updated position regarding war P&I risks coverage for vessels operating in the Indian Ocean, Gulf of Aden and Red Sea region.

Using the established market notice mechanism, the JLC has released an updated notice of cancellation and reinstatement (JL2026-024) adjusting its Red Sea area. This notice can be used by underwriters to add to areas already excluded as they consider appropriate.

The notice has been necessitated by the continuing security challenges affecting maritime trade in the region, where commercial shipping now faces an elevated threat environment arising from the Houthi declaration of an embargo of Saudi ports and an intent to target Saudi vessels. The Joint War Committee has, for the same reason, adjusted Listed Areas for hull war. 

The notice allows underwriters to reassess their war P&I risk exposures that fall outside those covered through the International Group pooling arrangements.

Under the terms of the notice, underwriters subscribing to an affected policy may issue a Notice of Cancellation in respect of war P&I risks that becomes effective following a 72-hour notice period.

At that point, war P&I risks coverage may be reinstated on existing policy terms, except in respect of a defined area in the notice which covers parts of the Indian Ocean, Gulf of Aden and Red Sea, together with any other areas already restricted or excluded under previous JLC notices, including JL2022-019 and JL2026-022.

The notice further confirms that war P&I risks coverage for the defined area may be reinstated where agreed by individual underwriters on terms determined by those underwriters. JL2026-024 does not alter the status of any other areas currently restricted or excluded under applicable policy terms, and all other policy conditions remain unchanged. It is available for immediate use and will be made available on the Lloyd’s Wordings Repository and the IUA website.