Japan Insurers in Talks with Reinsurers to Resume Coverage in Russian Waters

Yuka Obayashi
Tuesday, December 27, 2022

Three Japanese insurance companies that are set to halt marine coverage of risks related to the war in Ukraine starting next month are in talks with reinsurers to resume those operations, they said on Monday. 

Tokio Marine & Nichido Fire Insurance, Sompo Japan Insurance and Mitsui Sumitomo Insurance on Friday told shipowners that they would stop offering marine war insurance, which covers damage to ships from war in Russian waters, from Jan. 1, spokespeople at the companies said. 

Their comments confirmed local media reports on Saturday. The change could affect Japan's imports of liquefied natural gas (LNG) among other energy and commodities. 

The insurers' decision was prompted by global reinsurance companies saying they would no longer take on vessels' risks related to the war, which Moscow began in February. The Russian government calls it a "special operation". 

"We are negotiating with various reinsurers to get the war coverage in order to restart providing marine war insurance in the area to our customers," a spokespeople at Tokio Marine said, adding that some reinsurers have responded "positively." 

Sompo Japan and Mitsui Sumitomo Insurance are also searching for new reinsurers, their spokespeople said. 

Most vessels get two types of insurance: marine insurance covering damage from natural disasters and collisions, and marine war insurance covering damage from war or terrorism. 

Without marine war insurance, shipowners may give up operations in Russian waters, including picking up LNG from the Sakhalin-2 gas and oil project in Russia's Far East. 

Japanese shipping company Mitsui OSK Lines 9104.T said it is gathering information. Nippon Yusen will cooperate with the government and business partners, a spokesperson said when asked about its shipping plan from Sakhalin-2. 

The Sakhalin Island complex, partly owned by Gazprom and Japanese trading houses, accounts for 9% of Japan's LNG imports. 

(Reuters - Reporting by Yuka Obayashi. Editing by Gerry Doyle)

Categories: Legal Insurance Asia Marine Insurance Sanctions LNG Carriers

Related Stories

India Stretches Bids Deadline for 13 Offshore Deep-Sea Mineral Blocks

Sapura Energy Nets $22.6M in Offshore Support Vessel Contracts

VARD Snags $125M Shipbuilding Deal for Subsea Construction Vessel

Op-Ed: Kazakhstan’s National O&G Firm Positioning Itself as Global Energy Player

CNOOC Sees 11% Profit Growth in 2024 Driven by Record Oil Production

CNOOC Discovers ‘Vast Exploration Prospects’ in China’s Beibu Gulf Basin

Sapura Energy Nets $720M from Multiple Drilling Services Contracts

Six New Gas Wells in Line for BP’s Shah Deniz Field in Caspian Sea

ADNOC Secures LNG Supply Deal with India's BPCL

EnQuest to Acquire Harbour Energy's Vietnamese Assets

Current News

Hanwha Drilling’s Tidal Action Drillship En Route to Petrobras’ Roncador Field

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

MODEC Wins ExxonMobil Guyana’s Hammerhead FPSO Contract

Mitigate SCC & HE to Keep Offshore Metal Structures Ship Shape

India Stretches Bids Deadline for 13 Offshore Deep-Sea Mineral Blocks

Indonesia Awards Oil and Gas Blocks to Boost Reserves

Sapura Energy Nets $22.6M in Offshore Support Vessel Contracts

CNOOC Puts Into Production New Oil Field in South China Sea

Sunda Energy Starts Environmental Consultation for Chuditch-2 Well Drilling Plans

Pakistan’s OGDC to Start Production at ADNOC’s Offshore Block by 2027

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com