War Risk Insurance in the Black Sea Rises Again

The cost of war risk insurance for vessels calling at Black Sea ports has increased sharply following drone attacks on Greek oil tankers en route to a Russian terminal for crude oil loading. According to industry sources cited by Reuters, the recent incidents have led insurers to reassess the overall risk environment for both Ukrainian and Russian Black Sea ports.

War risk insurance premiums for port calls in the Black Sea have risen to around 1% of a vessel’s value, compared to 0.6–0.8% recorded at the end of December, marking the highest level since 2023. Munro Anderson, a specialist in marine war risk insurance at Vessel Protect (part of Pen Underwriting), notes that the Black Sea is increasingly characterised by rapid risk escalation with minimal warning indicators, complicating underwriting and actuarial assessments.

Vessels calling at Ukrainian or Russian Black Sea ports, as well as terminals in the Sea of Azov, require additional war risk cover, typically issued for seven days. However, insurers are now revising policy terms every 24 hours instead of every 48 hours, increasing operational uncertainty and transaction costs for shipowners and charterers. According to David Smith, Head of Marine at insurance broker McGill and Partners, war risk premiums in the Black Sea remain extremely volatile and may exceed 1% depending on vessel value, ownership structure and the intended port of call.

Comment – Institute of Danube Research 
Rising war risk insurance premiums in the Black Sea have a systemic impact on the Black Sea–Danube region, where maritime and inland waterway logistics are closely interconnected. For Danube ports in Ukraine and Romania, higher insurance costs translate into indirect increases in freight rates and reduced flexibility of shipping routes. In the medium term, this trend reinforces the strategic role of the Danube as a relatively more stable logistics corridor, while underscoring the need for coordinated security, insurance and infrastructure policies across Black Sea and Danube countries.