# Japan insurers in talks with reinsurers to resume coverage in Russian waters
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-12-26
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Japanese Insurers Halt Marine War Insurance in Ukraine, Seek
Meta Description: Learn how Japanese insurance firms are working to resume marine war coverage in Ukraine amidst global reinsurance challenges. Tokio Marine, Sompo Japan, and
URL: https://financedigest.com/japan-insurers-in-talks-with-reinsurers-to-resume-coverage-in-russian-watershtml

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TOKYO (Reuters) – Three Japanese insurance companies that are set to halt marine coverage of risks related to the war in Ukraine starting next month are in talks with reinsurers to resume those operations, they said on Monday.

Tokio Marine & Nichido Fire Insurance, Sompo Japan Insurance and Mitsui Sumitomo Insurance on Friday told shipowners that they would stop offering marine war insurance, which covers damage to ships from war in Russian waters, from Jan. 1, spokespeople at the companies said. Their comments confirmed local media reports on Saturday.

The [change could affect Japan’s imports](https://www.financedigest.com/changing-face-b2b-business-practices-understanding-timeless-behaviour-important-ever.html "The changing face of B2B business practices – why understanding timeless behaviour is more important than ever.") of liquefied natural gas (LNG) among other energy and commodities.

The insurers’ decision was prompted by global reinsurance companies [saying they would no longer take on vessels’ risks](https://www.financedigest.com/british-doctors-strikes-risk-patient-safety-minister-says.html "British doctors’ strikes risk patient safety, minister says") related to the war, which Moscow began in February. The Russian government [calls it a “special](https://www.financedigest.com/four-european-countries-call-for-special-treatment-of-defence-in-eu-debt-rules-document.html "Four European countries call for special treatment of defence in EU debt rules – document") operation.

We are negotiating with various reinsurers to get the war [coverage in order to restart providing marine war insurance](https://www.financedigest.com/5-tips-for-selecting-the-best-car-insurance-coverage.html "5 Tips for Selecting the Best Car Insurance Coverage") in the area to our customers,” a spokespeople at Tokio Marine said, adding that some reinsurers have responded “positively.

Sompo [Japan and Mitsui Sumitomo Insurance](https://www.financedigest.com/japan-insurers-to-maintain-cover-for-lng-vessels-in-russian-waters.html "Japan insurers to maintain cover for LNG vessels in Russian waters") are also searching for new reinsurers, their spokespeople said.

Most vessels get two [types of insurance:](https://www.financedigest.com/types-of-insurance-for-yourself-and-your-family.html "Types Of Insurance For Yourself And Your Family") marine insurance covering damage from natural disasters and collisions, and marine war insurance covering damage from war or terrorism.

Without marine war insurance, shipowners may give up operations in Russian waters, including picking up LNG from the Sakhalin-2 gas and oil project in [Russia’s Far East](https://www.financedigest.com/russia-sharply-scales-back-far-east-war-games-with-china.html "Russia sharply scales back Far East war games with China").

Japanese shipping [company Mitsui OSK Lines](https://www.financedigest.com/the-severe-impact-of-downtime-on-companies-bottom-lines.html "The severe impact of downtime on companies’ bottom lines") said it is gathering information. Nippon Yusen will cooperate with the government and [business partners](https://www.financedigest.com/the-evolving-role-of-the-cfo-from-scorekeeper-to-business-partner.html "The Evolving Role of the CFO: From Scorekeeper to Business Partner"), a spokesperson said when asked about its shipping plan from Sakhalin-2.

The Sakhalin Island complex, partly owned by Gazprom and Japanese [trading houses](https://www.financedigest.com/commodities-trading-houses-help-keep-russian-oil-flowing.html "Commodities trading houses help keep Russian oil flowing"), accounts for 9% of Japan’s LNG imports.

(Reporting by Yuka Obayashi. Editing by Gerry Doyle)


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