War insurance costs for vessels operating in the Black Sea have increased, with insurers reviewing coverage terms on a daily basis as conflict-related risks escalate.
Market sources indicate a shift from the previous 48-hour review cycle to more frequent assessments, reflecting heightened exposure for ships entering Russian and Ukrainian ports.
According to a report from Reuters, vessels calling at terminals in the Black Sea and the Sea of Azov are required to purchase additional war-risk insurance, issued on seven-day terms. Premiums have moved up to between 0.6% and 1% of a ship's value for some voyages, compared with 0.4% to 0.6% last week.
The differential in pricing between Russian and Ukrainian port calls has narrowed, suggesting an alignment of perceived risk across both sides of the region. While insurers have not withdrawn cover, market participants note that cancellation remains a potential response should the conflict intensify or broaden further into commercial sea lanes.
Statements from Russian President Vladimir Putin about cutting Ukraine’s access to the sea, combined with tanker attacks attributed to Ukrainian forces, have added uncertainty to underwriting decisions. Underwriters are monitoring whether threats translate into direct action against commercial shipping, as this could drive additional premium increases.
Marcus Baker, global marine leader at Marsh, said additional war-risk pricing may continue to climb if attacks escalate. He added that the designated high-risk zone could widen if more incidents occur near Turkish waters, according to the report.
Security advisory firm Ambrey stated that the threat environment for tankers calling at both Russian and Ukrainian ports has increased and recommended post-call hull inspections to detect potential limpet mines. Insurers are examining such advisories closely as part of risk modelling, with operational guidance influencing pricing and policy terms.
The situation underscores the pressure on the marine insurance market as geopolitical tension continues to shape underwriting appetite, risk cost, and access to war cover for energy and commodity transport routes in the region, Reuters reported.
