In response to escalating risks in the Persian Gulf due to ongoing conflicts, India is set to launch a $1.5 billion sovereign guarantee fund aimed at supporting insurers that provide coverage for vessels navigating the region. This initiative comes as maritime war risk insurance premiums have skyrocketed, with increases reaching as high as 1,000% in some cases. The surge in premiums has significantly impacted shipowners, traders, and energy firms, raising their operational costs. Additionally, a $300 million fund will be established with contributions from the insurance industry to address any substantial rise in claims. The Indian insurance regulator has sought feedback from industry players on the necessary support and implementation of these funds, which could help reduce reliance on overseas reinsurance and stabilize insurance costs as trade resumes. Despite potential reopening of the Strait of Hormuz, insurers anticipate that elevated war-risk pricing will continue due to persistent security concerns in the region.