The war has led to a significant change in the assessment of maritime risks, which is reflected in the insurance conditions for ships and cargoes exposed to military risk, commented to taralej.bg on behalf of Association of Bulgarian Insurers (ABZ) Katya Vakova, Director of the "Transport and Marine Insurance" Directorate at "Bulstrad Vienna Insurance Group". It cannot be categorically stated that there has been a reduction in the number of insurance policies concluded in the Black Sea region, as other factors also have an impact. The changes are more clearly visible in the insurance conditions, the price of coverage, and the decisions of shipowners regarding routes and ports.
"Higher insurance premiums increase the total costs of performing maritime transport. This is important for voyages through regions with increased military risk, for which an additional premium for a specific transport may be required" explained Katya Vakova. These additional costs may be partially or fully passed on to traders and end consumers. Katya Vakova clarified that the increased risk does not automatically mean the cancellation of insurance coverage, but it may lead to the limitation of conditions, higher deductibles, special exclusions, or the need for additional negotiation of coverage.
There is a distinction between standard marine insurance and coverage for war risks – for cargoes and ships, war risks are usually excluded from the standard conditions and are insured separately. Katya Vakova pointed out that this is not a matter of lack of coverage, but rather an individual approach to risk. When assessing it, the route, the type and value of the cargo, the characteristics of the ship, and the ports it passes through are all important.
As early as September 16, the Joint War Committee, which assesses war risks for marine insurance, designated the Black Sea basin as a risk zone with an "Extreme" level, with the exception of the territorial waters of Bulgaria, Romania, Turkey, and Georgia. "From an insurance perspective, it is not only important how many ships are sailing, but also how their risk exposure is changing. It is important to distinguish between the reduction in shipping, the number of insurance policies concluded, and the increase in insurance premiums", summarized Katya Vakova.
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