Marine Insurers Expand Black Sea High-Risk Zone as Shipping Attacks Rise

London's marine insurance market has broadened the stretch of the Black Sea it classifies as high risk, following an escalation in attacks on commercial shipping amid the ongoing Ukraine-Russia conflict.

The Joint War Committee (JWC), which draws its members from the Lloyd's Market Association (LMA) and representatives of the London insurance company market, issued the advisory this week. Its guidance shapes how underwriters assess insurance premiums.

"This week, the JWC has expanded the Black Sea reporting requirements to the whole of the Black Sea area. The coastal waters of Russia and Ukraine were already listed," said Neil Roberts, head of marine and aviation at the LMA and secretary of the Joint War Committee, in a note accompanying the advisory.

He added that voyages within the territorial waters of neighbouring countries still do not require notification.

The Black Sea is a crucial route for shipments of grain, crude oil and refined products. Its waters are shared by Russia and Ukraine as well as Bulgaria, Georgia, Romania and Turkey.

Over the past two months, Russia and Ukraine have intensified attacks on each other's commercial shipping, marking a further escalation of a war now in its fifth year.

War risk premiums have climbed sharply in recent weeks as dozens of ships have been attacked in the Black Sea. These premiums add hundreds of thousands of dollars in extra costs for every seven-day voyage.