The Maritime Industry Authority (MARINA) has reinstated its insurance requirement for maritime operators to cover liabilities from sea accidents. This decision highlights the necessity of financial protection in the sector, aiming to enhance accountability and safety standards. By mandating insurance, MARINA seeks to mitigate financial burdens from maritime incidents.
India has authorized three Russian insurers, including Sberbank’s insurance unit, to provide marine coverage for ships at its ports. This decision supports Moscow’s oil supplies to India, its largest seaborne oil market after China. The permits for these insurers are valid until February 20, 2026, despite ongoing sanctions.
The surge in insurance costs for vessels passing through the Red Sea since early September is due to heightened risks of attacks by Yemen’s Houthis. This has led to insurers suspending coverage and increasing war risk premiums to as much as two percent of a ship’s value. Challenges for ships seeking coverage in the region are on the rise.
Insurers could face up to $3 billion in claims following the collapse of the Francis Scott Key Bridge in Baltimore. Lloyd’s of London companies are most at risk, with potential claims for damage to the bridge alone totaling $1.2 billion. Analysts predict additional liabilities for wrongful death and business interruption.
Some marine insurers are avoiding insuring U.S. and British merchant ships against war risks in the southern Red Sea, following recent Houthi attacks on commercial vessels. Insurers are seeking exclusions for ships with connections to the US, UK, and Israel, amid skyrocketing war risk ratios and increasing coverage costs.
The cost of war risk insurance for ships traveling through the Red Sea is soaring, reaching between 0.75 and 1 percent of the ship’s value. This poses a potential obstacle for trade through the waterway already deemed dangerous by the U.S. Navy. Shipowners must weigh the increasing costs against the risk of sailing through the region.
