Japan Insurers to Continue Marine War Insurance near Russia

Tokyo, Dec. 30 (Jiji Press)--Japanese nonlife insurers will continue providing marine war insurance in waters around Russia and Ukraine in 2023 after being asked to do so by the government, sources have said.

The insurers changed tack after warning policyholders last week of a halt to the insurance coverage from the start of 2023, raising concern that Japan might have to stop importing liquefied natural gas from the Sakhalin-2 project in Russia's Far East.

At issue were insurance products covering war-related damage to ships that operate in high-risk waters. Shipping companies obtain such insurance by paying additional premiums.

On Dec. 23, Tokio Marine & Nichido Fire Insurance Co., Sompo Japan Insurance Inc. and Mitsui Sumitomo Insurance Co. told tanker owners that they would no longer provide such insurance from January 2023 after foreign reinsurers refused to take on risks related to Russia, which is continuing military aggression against Ukraine.

The Financial Services Agency and the Agency for Natural Resources and Energy made a written request that the nonlife insurance industry continue providing the marine war insurance.

[Copyright The Jiji Press, Ltd.]