Black Sea War Risk Insurance Jumps 250% After Ukrainian Strikes

Insurance premiums for ships visiting Russian ports in the Black Sea have surged sharply following a series of Ukrainian attacks targeting vessels linked to Moscow.

According to Marsh, the world’s largest insurance broker, the cost of war risk coverage for Russian ports has more than tripled. Before the recent incidents, rates ranged from 0.25% to 0.3% of the ship’s value. After the attacks, coverage for some Ukrainian ports in the Black Sea is now as high as 1%, according to two market participants who requested anonymity.

Ukraine claimed that it targeted two tankers from Russia’s so-called shadow fleet, a group of vessels operating secretly to evade sanctions. Two other incidents involving Moscow-linked ships have also occurred since the end of last week.

Munro Anderson, Head of Operations at Vessel Protect, part of Pen Underwriting, said: “Underwriters are factoring in a wider range of potential strike locations and a higher likelihood of repeat attacks. As strikes escalate, the probability of Russian retaliation against vessels connected to Ukraine also rises.”

The blasts, three of which occurred in the Black Sea, come amid wider attacks on Russian oil infrastructure, elevating maritime risks in the region over recent weeks. Romania’s defense ministry reported that divers neutralized a Sea Baby drone 36 miles east of Constanta, highlighting shipping risks for Black Sea nations beyond Russia and Ukraine.

Dylan Mortimer, Marsh’s Marine Hull UK War Leader, said, “Rates have grown steadily in direct response to attacks increasingly targeting vessels and port or terminal infrastructure.”

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