Denmark is set to bolster its shipping industry with a significant plan in response to rising global tensions. The government will allocate nearly $1 billion to ensure Danish cargo ships are covered if private insurers withdraw during crises. This initiative involves activating the War Insurance Institute, which will provide insurance when regular companies refuse coverage due to war or conflict. The agency will also have access to a 6 billion-krone loan fund for damage claims.
The Business Minister emphasized the importance of preparedness, noting that Denmark’s merchant fleet, valued over 135 billion kroner (approximately $20 billion), plays a crucial role in global shipping. The plan aims to serve as a safety net amid increasing threats to cargo vessels, particularly in regions like the Red Sea and Gulf of Aden, where insurance costs have surged dramatically.
This proposal will be presented to Parliament later in 2025, with implementation expected by early 2026 if approved. Other nations, including Singapore and Greece, are exploring similar collaborations with private sectors to address wartime insurance gaps, reflecting a growing global concern for maritime security.
