Japanese insurers to resume insurance in Russian waters
2022.12.26 06:59
Japanese insurers to resume insurance in Russian waters
Budrigannews.com – They said on Monday that three Japanese insurance companies are in talks with reinsurers to resume marine coverage of risks related to the war in Ukraine from next month.
Sompo Japan Insurance, Mitsui Sumitomo Insurance, and Tokio Marine & Nichido Fire Insurance informed shipowners on Friday that they would no longer provide marine war insurance, which covers damage to ships caused by war in Russian waters, beginning January 1, according to company representatives. Saturday’s reports from the local media were supported by their comments.
Japan’s imports of liquefied natural gas (LNG) and other energy and commodities may be affected by the change.
The global reinsurance companies’ announcement that they would no longer accept vessel risks related to the war, which Moscow started in February, prompted the insurers’ decision. It’s called a “special operation” by the Russian government.
A spokesperson for Tokio Marine stated, “We are negotiating with various reinsurers to get the war coverage in order to restart providing marine war insurance to our customers in the area,” noting that some reinsurers had responded “positively.”
According to their spokespersons, Sompo Japan and Mitsui Sumitomo Insurance are also looking for new reinsurers.
The majority of vessels have two types of insurance: marine war insurance covers damage caused by war or terrorism, and marine natural disaster insurance covers damage caused by collisions.
Shipowners may cease operations in Russian waters without marine war insurance, including the purchase of LNG from the Sakhalin-2 gas and oil project in Russia’s Far East.
Mitsui OSK Lines, a Japanese shipping company, stated that it is gathering data. When asked about its shipping plan from Sakhalin-2, a spokesperson stated that Nippon Yusen would collaborate with partners in business and the government.
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Gazprom owns a portion of the complex on Sakhalin Island (MCX:) 9% of Japan’s LNG imports come from Japanese trading houses.
