London’s marine insurance market has widened the area of waters around the Black Sea and Sea of Azov that it deems high risk, as Russia’s invasion of Ukraine intensifies and perils to merchant shipping grow.
Marine insurers said in advisory dated March 7 that the high risk area had been widened to waters close to Romania (a NATO member) and Georgia after initially adding Russian and Ukrainian waters in the Black Sea and Sea of Azov in February.
The new high risk areas also extended to various inland waters and sections of the high seas, underscoring the increasing dangers to sailings through the whole region.
Guidance from the insurance industry’s Joint War Committee (JWC) is watched closely and influences underwriters’ considerations over insurance premiums.
The JWC in a market advisory pointed to three ships that had been hit around the Ukrainian port of Odessa adding that the situation “is dynamic and being closely monitored.”
“The listed areas will be re-adjusted if the JWC believe it appropriate.”