Drone attacks push Black Sea war insurance rates higher for oil tankers

Rates rose to their highest since 2023 in early December after a series of drone attacks on Russian-linked tankers. "Rapid risk escalation, with few indicators and warnings preceding, has become a hallmark of the Black Sea environment," said Munro Anderson of marine war insurance specialist Vessel Protect.

Ships sailing into Russian or Ukrainian Black Sea ports or terminals around the Sea of Azov require additional war-risk insurance, typically set for a seven-day period. These terms are reviewed every 24 hours.

In contrast, policies were typically reviewed every 48 hours last month. Black Sea war rates were extremely volatile and were changing on a daily basis, David Smith, head of marine with insurance broker McGill and Partners, said.