Rates to stay flat for Ukraine grain cargo insurance-Ascot
22/12/2022 09:41
LONDON, Dec 22 (Reuters) - A cargo insurance facility
providing cover for shipments via Ukraine's grain export
corridor will continue next year with no rate increases, an
underwriter with Lloyd's of London SOLYD.UL insurer Ascot said
on Thursday.
Twenty-one insurers are part of the facility, which is led
by Ascot and arranged by broker Marsh MMC.N .
Ships entering the three Ukrainian ports that have been part
of the U.N.-backed agreement are usually required by their banks
to have various insurance policies in place, including hull and
cargo war cover, which is renewed every seven days.
War and other insurance rates are generally expected to rise
sharply across the board next year because of the conflict,
natural catastrophes and high inflation.
"The ‘AsOne’ Black Sea facility will continue unabated with
no planned increases to rating", Chris McGill, Ascot's head of
cargo, told Reuters by email.
"This is against a supply-driven, rate-hardening environment
in the marine war market."
Aviation and marine war insurers are concerned that
reinsurers - who insure the insurers - will exclude the whole
Ukraine, Russia and Belarus region when reinsurance contracts
come up for renewal on Jan. 1.
But McGill said the cargo facility was set up in such a way
that the insurers on the programme share the risk, without the
need for reinsurance.
(Reporting by Carolyn Cohn and Jonathan Saul; Editing by
Christian Schmollinger)
((carolyn.cohn@thomsonreuters.com; 44 207 513 4391;))