The war between Russia and Ukraine also concerns the world insurance industry. Halil Solak, Technical Manager of Turk P&I, said that unlike some insurance companies in the world, they try to keep the additional war premium amounts in a suitable band for existing customers without overburdening them and to continue their coverage.
Halil Solak said that he heard that some insurers in London gave incredible premiums of 10 percent over the cost of the ship.
“We, as Turk P&I, consider that the risk in Russian ports in the Black Sea is relatively less compared to Ukrainian ports at the moment. Already, cargo handling in Ukrainian ports has been stopped, and we even get sad news from the region. We try to keep the additional war premiums we charge within a suitable band for our existing customers without putting them too heavily, and to maintain their coverage, but we hear that some insurers in London have increased their prices to an incredible 10 percent over the ship’s cost.
We foresee that the main problem for our shipowners will be the ever-expanding sanctions against Russia, rather than finding insurance coverage. Moreover, this situation does not seem to be short-lived. We follow the issue closely both with our representatives in the region and with our reinsurers, and we try to inform our policyholders through their brokers.”
Insurance costs of ships passing through the Black Sea are increasing
On the other hand, insurance companies around the world have begun to increase the cost of providing coverage for commercial vessels passing through the Black Sea.
In the news in Reuters, comments were included, “Shipowners pay an additional premium in addition to the annual war risk insurance when entering high-risk areas. These premiums are calculated based on the value of the vessel or boat for seven days. Ship insurers rate additional premiums for seven days, ranging from an estimated 0.025 percent on the Monday before the invasion of Russia began, to anywhere from 1 percent to 2 percent and up to 5 percent of insurance costs, according to benchmark rates from marine insurance sources. they offered. This translates into hundreds of thousands of dollars in additional costs for a cruise, depending on the destination.”