Japanese Government To Continue Marine War Insurance

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The Japanese government has asked nonlife insurers to continue providing marine war insurance in Russian waters to ensure that Japan can keep importing liquefied natural gas from the Sakhalin-2 project, says an article published on Nippon.

Provide insurance to cover damage

The Financial Services Agency and the Agency for Natural Resources and Energy made the written request to the General Insurance Association of Japan.

Last week, Tokio Marine & Nichido Fire Insurance Co., Sompo Japan Insurance Inc. and Mitsui Sumitomo Insurance Co. told policyholders that they will stop providing insurance to cover damage to ships from war in Russian waters, effective from next January.

Foreign reinsurance

The Japanese insurers made the move after foreign reinsurance companies said they will no longer take on such war-related risks.

The government agencies asked the nonlife insurance industry to assume part of the risks the reinsurers have refused to take on.

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Source: Nippon