Marine Insurance Market News

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…

A cargo ship abandoned four days ago in the Gulf of Aden after it was hit by missiles fired by Yemen's Houthis is still floating despite taking in water, and could be towed to nearby Djibouti, industry sources said on Wednesday.Shipping risks have escalated due to repeated drone and missile strikes in the Red Sea and Bab al-Mandab Strait by the Iran-aligned Houthis since November. U.S. and British forces have responded with several strikes on Houthi facilities but have so far failed to halt the attacks.The crew of the Belize-flagged Rubymar abandoned the vessel after it was hit on Sunday…

A merchant ship sailing off Somalia has been hijacked by unknown raiders, Spain's defence ministry said on Tuesday, fuelling fears pirates are returning to the Gulf of Aden and Red Sea waters already plagued by a surge in attacks on shipping.A Spanish warship rushed to check on the Maltese-flagged vessel Ruen on Friday after reports it had been hijacked. It "has been under piracy (control) since the morning of Dec. 14," the ministry said in a statement, in its first confirmation of the ship's fate."The MV Ruen has indeed been hijacked.

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

Opening this week’s International Union of Marine Insurance (IUMI) annual conference in Edinburgh, Scotland, President Frédéric Denèfle explained the conference theme of “strength and stability in turbulent seas” saying it is essentially “business as usual” for marine underwriters.“As marine underwriters, we are used to managing an array of casualties and losses onboard a variety of vessels and in ports and other shoreside facilities. Dealing with the fall-out from natural catastrophes such as earthquakes and weather events are also workaday issues.

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…

Key arrangements including procedures for ships still need to be worked out before empty vessels can come in and pick up cargoes from Ukraine using the new grains corridor, a senior London marine insurance market official said on Monday.Turkey and the United Nations brokered a grain-and-fertilizer export agreement between Russia and Ukraine last month - a rare diplomatic breakthrough in a conflict that is grinding on with no resolution in sight."The standard operating procedures for vessels still need to be worked out and there are issues about crewing that still need to be resolved…

London’s marine insurance market on Monday added all of Russia’s waters to its list of areas deemed high risk, an advisory showed.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.Following Russia's invasion of Ukraine on February 24, the JWC last month added Ukrainian and Russian waters around the Black Sea and Sea of Azov to its high-risk areas…

With more than 1,000 seafarers stranded on ships in Ukrainian ports and food supplies running low, the United Nations is pressing for their safe passage out of danger but security risks and disagreements are hobbling those efforts, maritime sources say.Russia's military took control of waterways when it invaded Ukraine on February 24, in what Moscow calls a "special operation".Since then at least 100 foreign flagged ships with over 1,000 seafarers have been stuck inside Ukrainian ports with food supplies running low, shipping officials say.UN shipping agency the International Maritime Organization (IMO) said this month it would seek to create a safe maritime corridor to enable merchant ships and their crews to sail out of the Black Sea and Sea of Azov without the risk of being hit."The IMO

Food and medical supplies onboard over 100 foreign flagged ships stuck in Ukraine due to the conflict are running low, with little progress on creating a maritime corridor to allow them to sail away, industry officials said on Wednesday.London's marine insurance market has widened the area of waters it considers high risk in the region as the conflict intensifies and perils to merchant shipping grow.The UN's shipping agency said this month it would work to create a safe maritime…

State-owned Bangladesh Shipping Corp is seeking $22.4 million from its insurer for a cargo ship hit by a missile in March, government officials with knowledge of the talks said, in the first major marine insurance claim from the conflict in Ukraine.The UN's shipping agency said last week it would create a safe maritime corridor for merchant ships and crews stuck in the Black Sea and Sea of Azov, although shipping industry sources expect progress to be slow. Projectiles have hit four other vessels in recent days with one sunk.Insurance premiums have soared by over 100% for voyages to the region since the war started. Insurers are watching…

London’s marine insurance market has widened the area of waters around the Black Sea and Sea of Azov that it deems high risk as Russia's invasion of Ukraine intensifies and perils to merchant shipping grow.The insurance industry's Joint War Committee (JWC) said in an advisory dated March 7 that the high-risk area had been widened to waters close to Romania and Georgia after initially adding Russian and Ukrainian waters in the Black Sea and Sea of Azov on Feb. 15.At least five commercial ships have been hit by projectiles since Feb.

Insurers have raised the cost of providing cover for merchant ships through the Black Sea, adding to soaring rates to transport goods through the region for vessels still willing to sail after Russia's invasion of Ukraine.Ship owners pay annual war-risk insurance cover as well as an additional "breach" premium when entering high-risk areas. These separate premiums are calculated according to the value of the ship, or hull, for a seven-day period.Ship insurers have quoted the additional premium rate for seven days at anywhere between 1% to 2% and up to 5% of insurance costs…

London’s marine insurance market on Tuesday added the Ukrainian and Russian waters around the Black Sea and Sea of Azov to its list of areas deemed high risk as tensions persist in the region, a senior official said.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.Following a buildup of Russian troops near Ukraine…

When Captain Will Whatley guides a ship through Arctic waters, he is starkly aware of what can go wrong.Double the manpower is needed to navigate. Lookout shifts are kept to just one hour, so sailors don't lose concentration and miss a mass of floating ice. Big icebergs show up on radar, but smaller, truck-sized "bergy bits"—even more dangerous—can be missed, the captain says.The cold can freeze equipment and the earth's magnetic field disrupts compasses. If anything goes wrong…

London's marine insurance market has extended the list of waters deemed high risk to include Oman, the United Arab Emirates and the Gulf after ship attacks off Fujairah, officials said on Friday, in a move that could push up premiums.The London insurance market's Joint War Committee said in a statement that the additions cover areas of perceived enhanced risk for marine insurers and reflected enhanced regional risk."The situation will be kept under close review," said the Joint War Committee…

London's marine insurance market has extended the list of waters deemed as high risk to include Oman, the United Arab Emirates and the Gulf after ship attacks off Fujairah, officials said on Friday.The London insurance market's Joint War Committee issued a statement saying that the additions detail areas of perceived enhanced risk for marine insurers and reflect the enhanced regional risk.Its guidance is watched closely and influences underwriters' considerations over insurance premiums. (Reporting by Jonathan Saul Editing by David Goodman)

British ship insurer UK P&I Club has received approval from the Dutch regulator for a new subsidiary in Rotterdam to ensure continued access to trade in the European Union in case Britain loses single market access, it said on Tuesday.UK Club is the second specialist Protection and Indemnity (P&I) club to announce regulatory approval for Brexit trading arrangements in the EU. Rival club North said in January it got the green light for its Dublin subsidiary from Ireland's central bank.P&I clubs - mutually owned by their members which are shipping companies - have been an integral part of the City of London for nearly two centuries, insuring ocean going ships against pollution and injury claims…

British ship insurer North has received regulatory approval from Ireland's central bank for a new subsidiary in Dublin to ensure continued access to trade in the European Union in case Britain loses single market access, the firm said on Friday.North, which has its headquarters in the northern England city of Newcastle, is the first specialist Protection and Indemnity (P&I) club to announce regulatory approval for Brexit trading arrangements in the EU. It said a team of senior…

British ship insurer London P&I Club is setting up a new subsidiary in Cyprus to ensure continued access to trade in the European Union in case Britain loses single market access, the group told Reuters on Friday.Britain dominates the global marine insurance market and losing access to specialist Protection and Indemnity (P&I) clubs could weaken its multi-billion pound shipping services sector."We have … chosen Cyprus to establish our new post-Brexit EU subsidiary, and we are currently going through the process of setting it up and obtaining the necessary license," London Club said in a statement.London Club is one of 13 major global P&I insurers and Europe accounts for over 60 percent of the group's activities.The six P&I clubs regulated in Britain are estimated to account for over half t

AXA XL's North America marine insurance business is expanding its reach in the marine insurance market with a new policy specifically designed and delivered to address workboat risks.“Our new workboat policy represents the continued extension of our risk appetite and underwriting expertise to address a wider array of marine risks,” said Anne Marie Elder, AXA XL Chief Underwriting Officer for Marine in the North America. “Workboats represent many different types and sizes of vessels that are used for a wide range of tasks…

Richard Turner, European Director of Global Risk Solutions at RSA Insurance Group has been elected President of the International Union of Marine Insurance (IUMI).In accordance with the Articles of Association, IUMI’s Council formally elected Richard at their annual meeting which was held today, the final day of the IUMI annual conference in Cape Town. Richard, who has been closely associated with the global marine insurance market for 35 years, will serve a four-year term as President.Richard said: “IUMI is the global voice of marine insurance and is the professional body that represents national and international marine insurers. It…

As the cost inflation is set to accelerate on higher insurance premiums, average vessel operating costs rose modestly for the second year in succession following two years of marked declines, according to the latest report published by global shipping consultancy Drewry.The report titled 'Ship Operating Costs Annual Review and Forecast 2018/19' said that typical ship operating costs accelerated moderately in 2018 as the uncertain recovery in freight markets across most cargo sectors gained momentum.Opex costs are heavily linked to developments in the wider shipping market as some costs, such as insurance, are connected to asset values…