Vessel Protect bolsters cover commitment in conflict zones with increased war risk limits to protect and facilitate trade

Published On : 30 Apr 2024

Pen Underwriting’s marine war risk insurance specialist, Vessel Protect, has underscored its commitment to providing continuous support for commercial maritime operators transiting the world’s most active conflict zones by announcing significantly higher coverage limits.

Backed by Lloyd’s capacity, Vessel Protect can now offer war risk cover of up to USD 250 million for any one vessel – an increase of more than 40%. It can also offer cargo war coverage limits of up to USD 100m, with its appetite encompassing the Red Sea, Gulf of Aden and Indian Ocean, as well as the Black Sea.

The new limits, believed to be among the largest limits on offer within the marine war market globally, materially enhance the availability of cover for significant value vessels and the most modern of fleets needing to transit the most active conflict zones.

Munro Anderson, Head of Operations at Vessel Protect, said: “Brokers and their commercial shipowner clients having to transit active conflict zones need to know they can rely on their marine war risk insurance partners when already testing conditions change or escalate. They also need to know the availability of cover can accommodate rising vessel value.

“Vessel Protect has met both of these challenges head on. First, we affirmed continuity of cover six months ago in the Black Sea to facilitate vital grain shipments under the new export mechanism when other insurers pulled out. Next, we provided that same level of reassurance and ongoing support in the Gulf of Aden and Red Sea as multifaceted Houthi-led attacks on commercial maritime traffic soared.

“Now, we are able to offer an even more compelling proposition in terms of increased per vessel limit and cargo war risk in both geographical zones areas that remain at high risk. To effectively support vessels and their owners in navigating these complex environments of shifting risk requires highly responsive and reliable real-time provision of cover, which we are here to do.”

Chris Goddard, Co-Managing Director of Marine at Pen and CEO of Vessel Protect, added: “As with vessels trading in Ukrainian waters, we have been proud to be at the forefront in offering continuity of cover to commercial maritime operators in the Red Sea, Gulf of Aden and Indian Ocean.

“Despite the ever-changing geopolitical climate and maritime security conditions creating the most acute risk landscape in 40 years, shipping clients need to continue to trade and we are here to find a way to help them do that.

“Our nuanced, dynamic approach to writing war risk hull and cargo, as well as kidnap and ransom, comes from combining specialist underwriting expertise with real-time risk analysis and maritime security intelligence to individually evaluate every vessel we put on risk.

“That rigour has given our capacity the confidence to back higher per vessel limits and all of this is made possible by Pen’s continued investment in us – whether that’s in 24/7 digital cover provision, maritime risk intelligence, building out the team with new talent and underwriting resource or taking more space in Lloyd’s to facilitate in-person trading.”

Pen has taken box 394 at Lloyd’s to join with box 393 as it continues its investment into maximising ease of trade and broker access, effectively doubling its presence on the trading floor at Lloyd’s in only six months. Manned by Pen’s team of specialist marine underwriters, it provides brokers with support placing complex marine risks in areas including brown water hull, war risk and ports & terminals liability. In time, Pen intends for the box to diversify into complementary products and other lines of business that have Lloyd’s distribution, increasing underwriter expertise available for face-to-face trading.