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Home industry defence-technology from January 1, ship insurers will cancel war cover for Russia and Ukraine.

From January 1, ship insurers will cancel war cover for Russia and Ukraine.


Defence Technology

 From January 1, ship insurers

Ship insurers have said that they will no longer cover war risks in Russia, Ukraine, and Belarus. This is because reinsurers have left the area because of high losses.

Reinsurers, who provide insurance coverage for insurers, typically renew their 12-month contracts with insurance clients on January 1. This is their first opportunity to reduce their risk since the Ukraine conflict began. They lost money this year due to the war and Hurricane Ian in Florida.

According to recent notices posted on their websites, P&I clubs in the United States, Canada, the United Kingdom, and the West are no longer able to offer war risk coverage for liabilities in the region as of January 1. The clubs are among the world's largest P&I insurers, covering approximately 90% of ocean-going vessels.

P&I insurance typically covers third-party liability claims, such as environmental damage and bodily harm. Separate policies for the hull and machinery protect vessels against physical damage.

According to industry sources, the insurers' actions will make obtaining insurance more difficult for shipowners and charterers, raise premiums, and may cause some vessels to sail uninsured.

Reinsurance and retrocession providers include global giants Hannover Re, Munich Re, and Swiss Re, as well as Lloyd's of London syndicates. Swiss Re and Munich Re declined to comment. The other companies did not respond immediately.


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