Global marine insurers cut cover for Russia, Ukraine and Belarus – RT Business News
Firms say they can no longer provide cover to customers because reinsurers are leaving the region amid conflict
A group of companies known as the P&I (Protection and Indemnity) Clubs that provide insurance for the majority of the world’s ocean-going vessels will stop providing war risk cover in Russia, Ukraine and Belarus from 1 January, according to reviews on the bands’ websites. .
The notices stated that insurers will no longer cover any loss, damage, liability, cost or expense”caused by or arising out of or in connection with any Russian-Ukrainian conflict and/or any extension of such conflict.” At least 12 of the 13 P&I clubs have announced the move so far.
According to a statement from the UK’s P&I Club, the decision was taken due to a massive outflow of reinsurers from the region following financial losses due to the ongoing conflict in Ukraine. Reinsurers are companies that provide financial protection to insurance companies and manage risks that are too big for them to handle on their own. The US P&I also said in a notice last week that it had received a « cancellation noticefor the region with its war risk reinsurers and decided to terminate its own insurance as a result.
The 13 P&I Clubs collectively provide liability insurance for over 90% of the world’s ocean-going vessels and over 95% of ocean-going tankers. The move will make it harder for shipowners and charterers to obtain marine insurance next year. Analysts say this could drive up shipping costs and force many ships to sail without insurance or avoid the area altogether.
Some of the world’s largest reinsurance providers include Lloyd’s of London, Hannover Re, Munich Re and Swiss Re. The companies have so far declined to comment on the decision.
READ MORE:
Japanese companies suspend ship insurance for Russian waters – media
Following a similar announcement from Japanese insurers last week, the Japanese government has urged them to refrain from removing cover for liquefied natural gas (LNG) shippers sailing in Russian waters, Reuters reported on Wednesday, citing a senior official .
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