Japan insurers in talks with reinsurers to resume coverage in Russian waters
26/12/2022 08:01
TOKYO, Dec 26 (Reuters) - 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 9101.T 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
GAZP.MM and Japanese trading houses, accounts for 9% of
Japan's LNG imports.
(Reporting by Yuka Obayashi. Editing by Gerry Doyle)
((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))