Insurers Designate Entire Black Sea a High-Risk Zone

Risks are no longer confined to the coasts of Russia and Ukraine; insurers have revised the status of the entire Black Sea.

In September, the London insurance market’s Joint War Committee expanded the high-risk designation to cover the entire Black Sea. Previously, this special status applied primarily to waters immediately adjacent to Russia and Ukraine.

The decision followed a series of attacks on commercial vessels and port infrastructure. However, the territorial waters of Turkey, Romania, Bulgaria, and Georgia remain exempt from certain additional insurer notification requirements.

The practical consequences are already extending beyond Ukraine: rising war risk premiums are driving up shipping costs, and shipowners are compelled to implement additional security measures. Reuters previously reported that some vessels have begun using netting, water tanks, and other improvised defenses against drones.