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

CDWE Wraps Up Pin Pile Installation Job for Taiwanese Offshore Wind Farm

Fugro Lands Deepwater Gas Field Job in Southeast Asia

Keyfield Ventures into Indonesia’s Oil and Gas Market with New Partner

Mubadala Energy Open to Sell Andaman Gas for Domestic Use

Indonesia Grants Approval to Kuwaiti Firm for Anambas Block in Natuna Sea

TMC Books Compressors Orders for FPSO and LNG Vessels

MODEC, Sumitomo Partner Up for Delivery of Gato do Mato FPSO

Chuditch Gas Field Up for Summer Drilling Ops as Sunda Reshapes Ownership Structure

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

MODEC Wins ExxonMobil Guyana’s Hammerhead FPSO Contract

Current News

MODEC, Carbon Clean to Advance FPSO-Mounted Carbon Capture Tech

Aker Solutions, PTAS JV Hooks Brownfield Services Extension off Brunei

CDWE Wraps Up Pin Pile Installation Job for Taiwanese Offshore Wind Farm

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

Azeri SOCAR Plans New Agreements with Oil and Gas Majors

TPAO, SOCAR and BP to Ink Caspian Sea Oil and Gas Production Deal

Fugro Lands Deepwater Gas Field Job in Southeast Asia

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

China's Sinopec Laucnhes $690M Hydrogen Venture Capital Funds

CIP, ACEN Partner Up for First Large-Scale Offshore Wind Farm in Philippines

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