Marine transport: P&I Clubs to limit their exposure to war risk in Ukraine

Reinsurance companies have recently introduced an exclusion clause in their documents for certain Russian and Ukrainian businesses for the 1 January 2023 renewals.

This decision compels P&I Clubs, an association of marine insurers that covers 90% of the world's fleet in the event of a major loss, to limit coverage for claims arising from the Russian-Ukrainian war.

The provision initially concerns the third party liability of charterers of cargo ships and other tankers as well as small ship owners.

Insurers and reinsurers could be adversely affected by this withdrawal.