Since the beginning of the year, major domestic non-life insurance companies have stopped providing insurance that compensates for damage to vessels in waters such as Russia. It is now expected to be
According to sources, major non-life insurance companies Tokio Marine & Nichido Fire Insurance Co., Sompo Japan Insurance Co., and Mitsui Sumitomo Insurance Co. will compensate ships for damage caused by military operations in waters around Russia and Ukraine. It is expected that we will be able to continue the provision of "ship war insurance" from next month onwards.
Each company said it would stop providing insurance from the beginning of the year because the reinsurance company that underwrites some of the risks of "ship war insurance" refused to underwrite.
If the provision is stopped, it will be difficult to navigate in the target sea area, so it may affect the import of LNG = liquefied natural gas from the oil and natural gas development project "Sakhalin 2" in the Russian Far East. The Agency for Natural Resources and Energy and the Financial Services Agency had requested the non-life insurance industry to continue to provide insurance.
Under these circumstances, as a result of negotiations in the non-life insurance industry to secure reinsurance, it is expected that insurance will continue to be provided from the beginning of the year until March next year.
However, the amount of compensation underwritten by reinsurance companies is smaller than before, and it is unclear whether reinsurance will be provided after April next year. The challenge is whether we can stably procure LNG from