As Russia's invasion of Ukraine prolongs, major domestic non-life insurance companies have decided to stop providing insurance that compensates for damage to ships due to military actions in waters such as Russia from January.
Imports of LNG (liquefied natural gas) from the oil and natural gas development project "Sakhalin 2" in the Russian Far East may be affected.
Tokio Marine & Nichido Fire Insurance Co., Sompo Japan Insurance Co., Ltd., and Mitsui Sumitomo Insurance Co., Ltd., which are major non-life insurance companies, have announced that from January 1st, they will report damage to ships caused by military operations in all waters around Russia and Ukraine. We have decided to suspend the provision of "marine war insurance" to compensate, and have started notifying shipping companies.
Non-life insurers say this is because reinsurers that underwrite some of the risks of their "ship war insurance" refused to underwrite amid the prolonged Russian invasion of Ukraine.
In order to receive compensation for damage caused by military action, it is necessary to take out "marine war insurance," which covers war risks not covered by ordinary non-life insurance. It is expected that ships will find it difficult to navigate in these waters.
For this reason, there is a possibility that the import of LNG = liquefied natural gas from the oil and natural gas development project "Sakhalin 2" in the Russian Far East may be affected, and each company wants to proceed with negotiations such as the resumption of reinsurance in the future. is.
Ministry of Economy, Trade and Industry "Scrutinize the impact with related ministries and agencies"
Regarding the decision by a major domestic non-life insurance company to stop providing insurance that compensates for damage to ships due to military actions in waters such as Russia from January, the Ministry of Economy, Trade and Industry said, ``The facts and the impact of the suspension of insurance provision. We are scrutinizing with related ministries and agencies, etc. We will continue to do our best to ensure a stable supply of energy."
Mitsui O.S.K. Lines "Consider response"
A major shipping company, Mitsui O.S.K.