Common Questions

What is Skuld?

Skuld is a Norwegian mutual Protection and Indemnity (P&I) insurance club founded in 1897 in Oslo. It is one of thirteen members of the International Group of P&I Clubs, which together insure more than 90% of the world's ocean-going tonnage against liability risks including cargo damage, crew injury, and pollution.Source: International Group of P&I Clubs

Why did Skuld cancel war risk cover in the Persian Gulf?

Skuld issued cancellation notices for war risk cover across the Persian Gulf and Gulf of Oman effective approximately 72 hours from 2 March 2026, as Iran conflict escalation made the region commercially uninsurable. Without P&I cover, vessels cannot be financed or operated by any major shipping line.Source: Lowdown

Which P&I clubs cancelled Gulf war risk cover in March 2026?

Skuld, American Steamship Owners Mutual P&I, and London P&I Club issued the first cancellations on 2 March 2026. Gard and NorthStandard followed by 5 March, meaning every major P&I club had withdrawn war risk cover from the Gulf and Gulf of Oman.Source: Lowdown

Background

Skuld is a Norwegian mutual Protection and Indemnity (P&I) club, founded in 1897 in Oslo. It operates as a non-profit mutual insurer owned by its shipowner members, providing liability cover against third-party claims including cargo damage, crew injury, and pollution. Skuld is one of thirteen members of the International Group of P&I Clubs, which collectively insures over 90% of the world's ocean-going tonnage.

In early March 2026, Skuld was among the first P&I clubs to withdraw war risk cover from the Persian Gulf and Gulf of Oman as the Iran conflict escalated. Together with American Steamship Owners Mutual P&I and London P&I Club, Skuld issued cancellation notices effective approximately 72 hours from 2 March, leaving vessels commercially uninsurable without cover. By 5 March, Gard and NorthStandard had followed, completing a total withdrawal across all major clubs.

The coordinated pullout forced shipping operators to choose between halting Gulf operations or seeking cover under the US Development Finance Corporation's emergency scheme. The episode illustrated how mutual marine insurers, rather than governments, became the effective gatekeepers of Gulf trade: commercial risk calculus, not sanctions law, suspended a corridor carrying a fifth of global oil supply.

More questions

How does a P&I club differ from Lloyd's of London?

P&I clubs such as Skuld are mutual non-profit organisations owned by shipowner members that provide liability cover (third-party claims, cargo, crew, pollution). Lloyd's of London is a commercial insurance market that writes hull and war risk policies on a for-profit basis; the two systems are complementary but distinct.Source: International Group of P&I Clubs

What happens to shipping when P&I cover is cancelled?

Without P&I cover, ships cannot be financed by banks, accepted by ports, or chartered by major shipping lines. Reinstatement requires full syndicated risk reassessment that can take weeks after hostilities cease, meaning even a brief cancellation can disrupt supply chains for months.Source: Lowdown

How the World Sees Them

Iran

Tehran framed the P&I withdrawals as economic warfare orchestrated by Western powers, using insurance regulation as a sanctions mechanism outside of formal UN channels. The withdrawal handed Iran a propaganda point while simultaneously cutting off its own ports from international shipping services.

Norway

Norway is home to one of the world's largest shipping industries and hosts Skuld's Oslo headquarters, giving Norwegian maritime policy outsized global influence. Skuld's withdrawal aligned with Norwegian shipowners' assessment that the Gulf had become commercially uninsurable, reinforcing Oslo's cautious stance on the Iran conflict.

United States

Washington responded to the insurance vacuum by deploying the DFC to provide government-backed war risk cover, a tool unused at this scale since 1914. The US scheme partially filled the gap left by Skuld and its peers, but applied only to US-aligned shipping, leaving a significant coverage gap for Asian-flagged vessels.

International Shipping Industry

Shipowners rely on P&I clubs for liability cover that banks and charterers require before any vessel can operate commercially. Skuld's cancellation notice, combined with simultaneous withdrawals from other clubs, effectively embargoed major shipping lines from the Gulf without government intervention.