Rates will not increase for Ukraine grain cargo insurance as the ‘AsOne’ Black Sea facility – which provides cover for shipments via Ukraine’s grain export corridor – is to continue next year, Chris McGill, Ascot’s head of cargo, told Reuters.
Twenty-one insurers are part of the cargo insurance facility, led by Ascot, a specialty re/insurer, and arranged by broker Marsh.
McGill said: The ‘AsOne’ Black Sea facility will continue unabated with no planned increases to rating.
“This is against a supply-driven, rate-hardening environment in the marine war market.”
Banks usually require ships entering the three Ukrainian ports that have been part of the UN-backed agreement, to have various insurance policies in place.
These include hull and cargo war cover, which need to be renewed every seven days.
Because of the conflict, natural catastrophes and high inflation, war and other insurance rates are generally expected to rise sharply across the board next year, Reuters explained.
According to Reuters, aviation and marine war insurers are concerned that reinsurers will exclude the whole Ukraine, Russia and Belarus region when reinsurance contracts come up for renewal on January 1st.
But McGill treasured that this should not be a concern thanks to the way the cargo facility was set up. As insurers on the programme share the risk there is no need for reinsurance.