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Insurance News

12 Mar 2024

Nord Stream Sues Insurers in London Over 2022 Pipeline Blasts

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Nord Stream is seeking more than 400 million euros ($436 million) from its insurers over explosions in 2022 which ruptured pipelines designed to transport Russian gas to Germany, court filings show.Nord Stream AG names Lloyd's Insurance Company and Arch Insurance (EU) DAC as defendants in its lawsuit, which was filed at London's High Court last month.Switzerland-based Nord Stream confirmed in an email there is a contractual dispute in London commercial courts between itself and insurers of the pipeline system."However…

04 Mar 2024

War Insurers Shrug off Rubymar Sinking in Red Sea, Rates Stable

On March 2 at approximately 2:15 a.m. (Sanaa time), Rubymar, a Belize-flagged, UK-owned bulk carrier, sank in the Red Sea after being struck by an Iranian-backed Houthi anti-ship ballistic missile on Feb. 18. The ship had been slowly taking on water since the attack. (Photo: U.S. Central Command)

The cost of war risk insurance through the Red Sea remained stable on Monday despite the sinking of the Rubymar cargo ship as underwriters had already factored in the casualty after it was first hit by a missile last month, industry sources said.The cost of insuring a seven-day voyage through the Red Sea has risen by hundreds of thousands of dollars since Yemen's Iran-aligned Houthis began attacking shipping in the area in November in a show of solidarity with Palestinians in…

01 Mar 2024

Ukraine Expands Ship War Insurance with Marsh & Lloyd's to Iron Ore, Steel

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Insurance broker Marsh and Lloyd's of London underwriters have expanded a marine war insurance program backed by Ukraine from grain shipments to all non-military cargo, such as iron ore and steel, Marsh said on Friday.Marsh, Lloyd's and Ukrainian state banks launched an initial program in November to cut the cost of claims for damage to ships and crew transporting grain through the Black Sea corridor, following Russia's invasion of Ukraine two years ago."Expanding insurance to cover ships carrying all non-military cargo is extremely important for Ukraine…

07 Feb 2024

US, UK Ship Investors Hit by Soaring Red Sea Insurance

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War underwriters have raised the premiums they charge to U.S., British and Israeli firms by as high as 50% for ships transiting the Red Sea and some providers are avoiding such business due to targeting of the vessels by Yemen's Houthis, sources said.Attacks by the Iran-aligned Houthis since November have slowed trade between Asia and Europe and alarmed major powers. The Houthis say they are acting in solidarity with Palestinians as Israel's war against Hamas militants in Gaza…

18 Dec 2023

London Marine Insurers Widen High Risk Zone in Red Sea as Attacks Surge

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London's marine insurance market has widened the area in the Red Sea it deems as high risk amid a surge in attacks on commercial ships, according to a statement issued on Monday.Guidance from the Joint War Committee, which comprises syndicate members from the Lloyd's Market Association (LMA) and representatives from the London insurance company market, is watched closely and influences underwriters' considerations over insurance premiums.The joint war committee widened the high risk zone to 18 degrees north from 15 degrees north previously, the statement said.(Reuters - Reporting by Jonathan S

12 Dec 2023

Red Sea Shipping Costs Rising After Houthis Target More Commercial Vessels

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The cost of shipping goods through the Red Sea is rising as Yemen's Houthis step up attacks on ships they deem connected to Israel with fears of a spillover that could disrupt global supplies sailing through the region, industry sources said.Yemen's Houthis said on Tuesday they hit a Norwegian commercial tanker with a missile in their latest protest against Israel's invasion of Gaza, underlining the risks of a conflict that has shaken the Middle East.Around 23,000 ships pass through the narrow Bab al-Mandab Strait connecting the Red Sea and the Gulf of Aden…

07 Dec 2023

Maersk debuts Israel Shipments Surcharge to Cover Insurance

A.P. Moller-Maersk said it will introduce a risk surcharge next year on container shipments to Israel to cover rising insurance premiums due to the security situation."Moving into 2024, insurance premiums continue to be raised for vessels bound for Israel, which has brought about the need for Maersk to officially implement an Emergency Risk Surcharge (ERS)," the company said in a statement."The surcharge will be used to accommodate additional insurance costs and ultimately ensure a continued and sustainable service for our customers to Israel," it added.Customers will from Jan. 8 face a $50 surcharge on 20-foot containers while the charge for containers measuring 40 and 45 feet will be $100, Maersk said.(Reuters)

04 Dec 2023

War Risk Insurance Rates Edge Up After Surge in Red Sea Ship Attacks

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War risk insurance premiums edged up for Red Sea voyages after three vessels were attacked in the area on Sunday and fears grow over worsening perils for commercial shipping, maritime and insurance sources said on Monday.The incidents are the latest in a series of attacks in Middle Eastern waters since a brutal war between Israel and the Palestinian Islamist group Hamas broke out on Oct. 7.The three commercial vessels came under attack in international waters in the southern Red Sea, the U.S.

15 Nov 2023

Marsh, Lloyd's, Ukraine Launch War Risk Ship Insurance to Cut Grain Costs

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Insurance broker Marsh MMC.N, Lloyd's of London insurers and Ukrainian state banks have launched a programme to cut the cost of claims for damage to ships and crew transporting grain through the Black Sea corridor, Marsh said on Wednesday.Kyiv launched a "humanitarian corridor" in August for ships bound for Africa and Asia to circumvent a de facto blockade in the Black Sea after Russia quit a United Nations-brokered deal that had guaranteed Kyiv's seaborne exports during the war.Lloyd's of London insurers will underwrite the programme…

02 Nov 2023

Israel's Ship Industry Urges Government to Help with Jump in War Insurance

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Ships sailing for Israel face a 10-fold jump in war risk premiums as the conflict in Gaza intensifies, prompting industry calls for the government to help ensure vital imports keep coming.Israel has vowed to annihilate Islamist group Hamas after its fighters stormed through Israeli towns from Gaza on Oct. 7, killing 1,400 people and seizing more than 220 hostages.Israeli forces have hit back with deadly air strikes and now a ground offensive on the narrow coastal strip, with growing fears the conflict could escalate and pull in the whole region.Israel…

11 Oct 2023

Ascot Appoints New Head of Marine

Pat Stoik courtesy of Ascot

Pat Stoik will join insurer Ascot Group as Executive Vice President, Head of Marine, Ascot U.S., effective October 24. He will be based in New York and will report directly to Matt Kramer, Chief Executive Officer, Ascot U.S.An experienced executive in the marine industry, Stoik brings more than 35 years of senior management, underwriting, and broker experience to Ascot. Most recently, he served as Chief Risk Officer for Overhaul Group, Inc., a global leader in in-transit supply chain risk management…

26 Sep 2023

Ship Insurance Facility Set Up for Ukraine Grain Exports

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A new marine insurance facility for Ukrainian grain exports using the country's sea corridor has been set up in conjunction with Ukraine's authorities, insurance broker Miller said on Tuesday.Russia quit a U.N.-backed deal in July to enable exports from Ukraine to sail from three approved ports.Since then, Kyiv has launched what it calls a new temporary humanitarian corridor in an effort to break Russia's de facto blockade. Two ships have sailed in the recent days from the Ukrainian…

25 Sep 2023

AI Unlocks RIB Safety & Efficiency Gains

(Photo: Hefring Marine)

Facing rising costs, an Icelandic tour operator is using technology powered by artificial intelligence (AI) to enhance safety and slash insurance premiums for its fleet of high-speed rigid inflatable boats (RIB).Reykjavík-based Whale Safari runs tourist RIBs for whale and bird watching excursions in Iceland. From an insurer’s standpoint, the endeavor—which sees vessels that seat up to 12 passengers achieving high speeds and g-force wave impacts—is inherently risky. To make matters worse for companies like Whale Safari…

23 Aug 2023

Insurers Raise Premiums for Black Sea Tankers as Tensions Mount

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Insurance companies have notified charterers of ships operating in Russia's Black Sea ports of an increase in additional payments known as "war risk premiums", four traders said.A war risk premium was added to the common insurance costs for tankers last year after the start of Russia's military action in Ukraine, which Moscow calls a special military operation.Military actions in the Black Sea area of Russian and Ukrainian Black Sea ports have escalated since the grain export deal fell apart in mid-July.Most recently Russia reported several attacks at its Black Sea ports.

08 Aug 2023

After Attacking Ukraine Wheat Exports, Russia Faces Own Shipping Challenge

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Russia's lack of ships and Western grain traders' shrinking appetite for business with Moscow are adding to rising costs of moving Russian wheat, at a time when the war in Ukraine has spilled perilously close to vital Black Sea supply routes.President Vladimir Putin promised to replace Ukrainian grain with Russian shipments to Africa after Moscow in July ended an arrangement that gave Ukraine's food cargo safe passage in the Black Sea, imposing a de-facto blockade on its neighbour and attacking storage facilities…

07 Aug 2023

Hydor Acquires EF Marine

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Oslo-based Marine MGA Hydor AS has acquired all the shares in the Singapore- and Rotterdam-based marine MGA, EF Marine Pte. Ltd., and its subsidiary.The combined company will from hereafter be branded as Hydor, with a total team of 34 people, having offices in Oslo (head office), Rotterdam, Hamburg, Singapore, Hong Kong and Shanghai. The acquisition follows the investment by Longship Fund II into Hydor in April 2022.Morten Skomsøy, current CEO of Hydor, said, “The acquisition…

17 Jul 2023

Insurers Reviewing Black Sea Ship Cover After Russia Quits Deal

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Insurers are reviewing whether to freeze cover for any ships willing to sail to Ukraine after Russia on Monday quit a U.N.-backed deal that allows the export of grain through a wartime Black Sea safe corridor, industry sources said.The agreement, brokered by Turkey last July, aimed to alleviate a global food crisis by allowing Ukrainian grain blocked by Russia's February 2022 invasion of its neighbour to be exported safely."Due to the collapse of the Black Sea corridor deal, most shipowners will now refrain from calling Ukrainian ports…

06 Jun 2023

UAE Tightening Insurance Cover for Ships Flying Its Flag

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The United Arab Emirates is tightening insurance requirements for vessels registered under its flag, according to a government advisory, amid growing concerns over ships sailing without top tier cover in the event of an oil spill.Ships typically have protection and indemnity (P&I) insurance which covers liability claims including environmental damage and injury.

25 May 2023

Lloyd's Register Drops Ships of Top Indian Carrier of Russian Oil

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Lloyd's Register has told India's Gatik Ship Management, which has become a major carrier of Russian oil since the Ukraine war, that it will withdraw certification of 21 of its vessels by June 3, the maritime services company told Reuters.It is the latest setback for Gatik, which was also been forced to find new flags for 36 of its ships after they were deflagged by the St. Kitts & Nevis International Ship Registry."Lloyd's Register is committed to facilitating compliance with sanctions regulations on the trading of Russian oil," it said in an email to Reuters.

27 Apr 2023

Ship Insurers Warn of Russian Oil Price Cap Evasion, Risks of 'Dark Fleet'

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A rise in spot prices for Russian crude oil to above the $60 per barrel cap imposed by western powers has made ship insurers even more nervous of running foul of the rules as they are unable to independently track the value of cargoes, executives said.To curb Moscow's oil revenues following the Ukraine war, the Group of Seven Nations, the European Union and Australia imposed price caps on Russian crude and oil products from December and February, respectively.So long as the prices do not exceed capped levels…

26 Apr 2023

London Marine Insurers Add Sudan to High-risk List

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London’s marine insurance market added Sudan to its of areas deemed high risk this week amid further fighting in the conflict-ridden African country, according to an advisory note.The addition of Sudan to the high risk list will mean that any ships sailing into the country will need to pay an additional war risk premium and also seek approval from their insurer.Advisory notes from the Joint War Committee, which comprises syndicate members from the Lloyd’s Market Association and representatives from the London insurance company market…

23 Mar 2023

Insurers Covering Ukraine Grain Corridor Shipments for Now

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Insurers continue to cover grain shipments from Ukraine through a U.N.-backed corridor although more clarity will be required soon, a senior Lloyd's of London official said on Thursday, after the export accord was renewed for at least 60 days.The deal allowing the safe wartime export of Ukrainian grain from its Black Sea ports, initially brokered last July by Turkey and the U.N., was renewed on Saturday for just half the intended period.Insurance for ships going into the three Ukrainian ports covered by the agreement has been vital…

15 Mar 2023

Can Ukraine's Grain Corridor Ease the Global Food Crisis?

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Russia has proposed that a U.N.-backed initiative that has enabled grains to be exported from Ukraine's Black Sea ports should be renewed for just 60 days.The deal to free up grain exports from Ukraine's southern Black Sea ports, which expires later this month, has previously been renewed for 120 days and there are concerns a shorter extension could cause logistical issues.Reached in July last year, it created a protected sea transit corridor and was designed to alleviate global food shortages by allowing exports to resume from three ports in Ukraine…

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