London’s marine insurance market has expanded the area of waters around the Black Sea and Sea of Azov it considers high-risk as the Russian invasion of Ukraine intensifies and dangers to merchant shipping increase.
The insurance industry’s Joint Warfare Committee (JWC) said in a notice dated March 7 that the high-risk area had been extended to waters off Romania and Georgia, after initially adding the Russian and Ukrainian waters of the Black Sea and the Sea of Azov on February 15.
At least five commercial ships have been hit by shells since February 24, including one that sank and another in which a sailor was killed by a missile that hit the ship.
The new high-risk areas also extend to various inland waters and stretches of the high seas, highlighting the increased dangers.
“It is clear that the insurance market is becoming increasingly concerned about the region, especially in relation to the Black Sea,” says Marcus Baker of insurance broker and risk advisor Marsh. “Any future modifications to these zones will largely depend on further escalation of activity in the region.”
Insurance premiums for travel in the region have skyrocketed since the Russian invasion on February 24, a move Moscow calls a “special operation.”
Many shipping companies have suspended departures to the affected ports and the United Nations shipping agency will convene a special meeting this week to discuss the worsening situation.
The JWC’s guidance is closely followed and influences insurers’ consideration of insurance premiums. The JWC notice said three ships were hit in the vicinity of the Ukrainian port of Odessa, adding that the situation is “dynamic” and being closely monitored.
Source: Gestion
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