Japan Insurers to Stop Covering War Damage in Waters around Russia

Economy

Tokyo, Dec. 24 (Jiji Press)--Major Japanese nonlife insurers are set to stop providing insurance that covers war-linked damage in all waters around Russia and Ukraine on Jan. 1, it was learned Saturday.

The move comes as overseas reinsurance firms are withdrawing from undertaking risks associated with Russia amid its prolonged invasion of Ukraine, informed sources said.

It will become virtually difficult for ships to sail in the waters, possibly affecting Japan's imports of liquefied natural gas from the Sakhalin-2 oil and gas development project in Russia's Far East.

On Friday, Tokio Marine & Nichido Fire Insurance Co., Sompo Japan Insurance Inc. and Mitsui Sumitomo Insurance Co. notified policy holders that they will stop providing the war insurance for ships.

Almost all vessels have ordinary hull insurance, which, however, does not cover damage from war.

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Jiji Press