Reuters: P&I no longer insures vessels from Ukraine
3.01.2023 - 12:55
P&I cancels coverage of russia’s war against Ukraine after reinsurers withdraw from the region due to the threat of large losses.
American, British and Western P&I insurer companies have said they can no longer offer coverage for war risks in the region, Reuters writes. P&I (protection and indemnity) clubs American, North, UK and West are among the largest insurance companies, insuring about 90% of the world’s ships.
On December 23, the UK P&I Club said the problem arose from a lack of reinsurance, more commonly known as retrocession.
“The reinsurers of the Club are no longer able to provide reinsurance of war risks under the influence of territorial risks of russia, Ukraine or Belarus,” the company said in a statement.
Vessels typically carry P&I insurance, which covers third-party liability claims, including environmental damage and personal injury. A separate hull and machinery agreement protects vessels from physical damage.
The cancellation of coverage for Ukraine, the Republic of Belarus and russian federation applies to some, but not all, types of policies offered by P&I clubs, the publication notes.
One of the three policies required for marine transportation will not cover shipowner’s liability risks related to war. Other risks will be covered unchanged.
Reinsurance providers include global industry players such as Hannover Re ( HNRGn.DE ), Munich Re ( MUVGn.DE ) and Swiss Re ( SRENH.S ), as well as syndicates in the Lloyd’s of London ( SOLYD.UL ) market. All companies declined to comment on the situation.
