Surging War Insurance Costs Following Black Sea Tanker Attacks

Following drone attacks on Greek-managed oil tankers in the Black Sea, war insurance costs have surged nearly doubling. The region's shared waters are integral for shipping grain and oil, thus affecting risk assessments for both Russian and Ukrainian terminals, as volatile insurance rates spike amid heightened tensions.

War insurance costs for ships navigating the Black Sea surged dramatically after two drones hit Greek-managed oil tankers en route to a Russian terminal, according to industry sources. The Black Sea's strategic importance for shipping has led to heightened risk assessments for nearby Ukrainian and Russian facilities.

Insurance premiums for port calls in the area have soared to 1% of the ship's value, up from the previous 0.6%-0.8% range, the highest since 2023. This increase follows a succession of drone attacks on Russian-affiliated tankers, marking a trend of rapid risk escalation, noted Munro Anderson from Vessel Protect.

Ships entering Russian or Ukrainian Black Sea ports now require additional seven-day war-risk insurance, with terms reviewed every 24 hours. Previously, policies were assessed every 48 hours. David Smith from McGill and Partners remarked on the volatility, signaling possible future rate hikes depending on further incidents.