Page 57 - bne_March 2025_20250304

bne March 2025
Opinion 57
For vessels carrying Russian oil, just 16.9% have identifiable coverage. This lack of transparency makes it extremely difficult to verify compliance with IMO insurance standards.
Tankers with and without IG P&I insurance differ in age and flagging. On average, IG-insured vessels are nearly four years younger than tankers without coverage (14.4 vs. 18.1 years). More than 75% of non-IG-insured ships are over 15 years old, and about 25% exceed 20 years. Flagging also shows major differences, with 64.2% of non-IG-insured vessels registered under grey-listed, black-listed, or unranked jurisdictions, compared to just 25% of IG-covered ships.
Russian P&I insurers provide little transparency, disclosing coverage for only 220 tankers. This includes AlfaStrakhovanie, sanctioned by the EU, US, and UK. Ingosstrakh, sanctioned in the US and UK, plays a key role in shadow fleet insurance but does not disclose its coverage. The lack of transparency is a major concern, as is the fact that many P&I policies involve sanctioned insurers or are reinsured by restricted entities like RNRC.
Vessels in the global tanker fleet by age
Vessels in the global tanker fleet by flag state (top-15)
Sanctions coalition countries should continue their efforts to shed light on oil spill insurance. The lack of transparency in shadow fleet P&I insurance, combined with certain flag states failing to enforce international regulations, makes it difficult for potentially affected coastal states to even assess risks.
KSE Institute supports recent initiatives like the Nordic-Baltic proposal to implement insurance checks in key maritime zones such as the Baltic Sea and English Channel. This approach, combined with designating non-compliant vessels and strengthening IMO oversight, is critical to reducing risks from shadow fleet operations. By closing insurance loopholes and enforcing compliance, the maritime industry can better address the environmental and safety risks posed by aging and poorly insured vessels.
The Kyiv School of Economics (KSE) is a bne IntelliNews media partner and a leading source of economic analysis and information on Ukraine. This content originally appeared on the KSE website.
Vessels in the global tanker fleet by size
P&I insurance of tanker fleets*
P&I insurance of ships in the global tanker fleet
*includes chemical tankers
P&I insurance of tankers carrying Russian oil products in 2024*
Source: KSE Institute
*Insurance status reflects latest available information
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