Ship insurers said they were withdrawing coverage for war risks in Russia, Ukraine and Belarus as reinsurers pulled out of the region due to heavy losses, Reuters reported.

Reinsurers, who insure insurers, typically renew their 12-month contracts with policyholders on January 1, giving them the first opportunity to reduce their exposure since the war in Ukraine began, after suffering losses this year from the conflict and Hurricane Jan in Florida.

The American, North, British and Western P&I (protection and indemnity) clubs can no longer provide war risk cover for some commitments in the region from January 1, they said in recent notices on their websites.

Clubs is one of the largest P&I insurance companies, covering about 90% of the world’s ocean-going vessels.

The British P&I Club said on December 23 that the problem arose from the unavailability of reinsurance for reinsurers, also known as retrocession.

“The reinsurers of the Club can no longer offer reinsurance of war risks, territorial risks from Russia, Ukraine or Belarus,” the message reads.

American P&I said on Dec. 23 that it had received a “cancellation notice” for the region from its military risk reinsurers and was canceling its own insurance as a result.

Vessels usually carry P&I insurance, which covers civil liability claims, including damages and environmental damage.

A separate hull and equipment policy protects vessels against physical damage.

The cancellation of coverage for Ukraine and Russia affects some, but not all, types of policies offered by P&I clubs, three P&I insurance sources said.

(source: news.ro)