Almost the entire Black Sea has been included in the zone of increased military risk: flight insurance may become more expensive

The Joint War Committee (JWC) has expanded the list of areas of increased military risk to almost the entire Black Sea.

This is an updated list of JWLA-035, dated September 16. According to market participants, the new conditions should begin to apply from September 19.

It is planned to include almost the entire Black Sea in Listed Areas, with the exception of the territorial waters of Turkey, Georgia, Bulgaria and Romania. Shipowners are already receiving relevant notifications from P&I clubs.

The Joint War Committee determines areas of increased risk for the Lloyd’s and International Underwriting Association marine insurance markets.

The inclusion of an area in the list does not in itself mean a ban on shipping. At the same time, insurers may require separate coverage of military risks and an additional insurance premium for vessels entering such areas.

Its size is determined individually depending on the vessel, route, insurer and current risk assessment.

Market participants expect that the expansion of Listed Areas could increase the cost of insuring voyages through the Black Sea and, as a result, affect freight rates.

The JWLA-035 update expands the territory for which insurers can require additional military coverage.