Black Sea Voyage Insurance Could Become More Expensive as Risk Zone Expands

This was reported by USM.

According to the updated JWLA-035 list dated September 16, practically the entire Black Sea is expected to be included in the Listed Areas, with the exception of the territorial waters of Türkiye, Georgia, Bulgaria and Romania. Shipowners are already receiving the relevant notifications from P&I clubs.

The JWC defines high-risk areas for the Lloyd’s marine insurance market and the International Underwriting Association.

Inclusion of a sea area in the Listed Areas does not mean a ban on navigation. At the same time, insurers may require separate war risk cover and an additional insurance premium for voyages in such areas.

The amount will depend on the vessel, route, insurer and the current risk assessment.

Market participants expect that the expansion of the risk zone could increase the cost of insuring voyages through the Black Sea and affect freight rates.