{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,9,17]],"date-time":"2026-09-17T22:00:01Z","timestamp":1789682401973,"version":"4.0.1"},"posted":{"date-parts":[[2026]]},"group-title":"SSRN","reference-count":0,"publisher":"Elsevier BV","license":[{"start":{"date-parts":[[2026,1,1]],"date-time":"2026-01-01T00:00:00Z","timestamp":1767225600000},"content-version":"unspecified","delay-in-days":0,"URL":"https:\/\/www.uspto.gov\/ip-policy\/copyright-policy\/copyright-basics"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"abstract":"<jats:p>I study marine war-risk insurance during the 2026 Strait of Hormuz closure. Daily transit counts from the Joint Maritime Information Center fall from a prewar baseline of about 138 vessels per day to single digits within four days of the 28 February strikes. Additional war-risk premiums rise from 0.125 per cent of hull value to 2.25 per cent over the same window. I show that one per cent of hull value marks an empirical regime break in the relationship between premium and transit volume. Above this threshold, the premium remains negatively correlated with transit, but its elasticity weakens and the level dummy absorbs much of the suppression. After the 8 April ceasefire, transits recover only partially while the premium eases. I interpret these patterns as second-order market failure: insurance remains quoted and underwriter appetite remains present, but the premium ceases to be a sufficient clearing price because P&amp;amp;I structure, charter-party refusal rights, crew safety rules, and reinsurance reinstatement lags create simultaneous non-price rationing.<\/jats:p>","DOI":"10.2139\/ssrn.6747418","type":"posted-content","created":{"date-parts":[[2026,7,29]],"date-time":"2026-07-29T13:29:08Z","timestamp":1785331748000},"source":"Crossref","is-referenced-by-count":1,"title":["Pricing the Unsailable: Marine War-Risk Insurance and Catastrophic-Risk Market Failure in the 2026 Strait of Hormuz Closure"],"prefix":"10.2139","author":[{"ORCID":"https:\/\/orcid.org\/0009-0005-8477-9393","authenticated-orcid":true,"given":"Boon Chuan","family":"Lim","sequence":"first","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"78","container-title":[],"original-title":[],"deposited":{"date-parts":[[2026,7,29]],"date-time":"2026-07-29T13:29:09Z","timestamp":1785331749000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.ssrn.com\/abstract=6747418"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2026]]},"references-count":0,"URL":"https:\/\/doi.org\/10.2139\/ssrn.6747418","relation":{},"subject":[],"published":{"date-parts":[[2026]]},"subtype":"preprint"}}