War risk insurance premiums for vessels operating in the Black Sea have skyrocketed, climbing more than 250% after a series of Ukrainian attacks on Russia-linked ships. According to new market data from Marsh and other leading underwriters, the region is now considered one of the most volatile maritime zones in the world.
This dramatic jump in pricing reflects growing geopolitical tensions, heightened retaliation risks, and expanding strike locations across Russian and Ukrainian waters.
War Risk Premiums Triple for Ships Calling at Russian Ports
Before the latest attacks, war risk cover for ships visiting Russian ports in the Black Sea cost between 0.25% and 0.30% of a vessel’s value, according to Marsh, the world’s largest insurance broker.
However, recent missile and drone incidents have caused insurers to reprice risk sharply. Rates for these port calls have now more than tripled, pushing many shipowners to reassess their routes, risk tolerance, and cargo allocation strategies.
Underwriters are also applying stricter terms, with some markets refusing coverage altogether for ships deemed too closely linked to Russian trade.
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Ukrainian Port Calls Now Cost Up to 1% of Vessel Value
Two market sources involved in Black Sea marine underwriting confirmed that some Ukrainian port calls are now attracting war risk premiums of up to 1% of a ship’s declared value.
This makes Ukraine one of the most expensive destinations in the world for war risk cover, comparable to high-threat regions such as the Red Sea, the Gulf of Aden, and certain West African piracy zones.
Targeted Attacks on Russia’s Shadow Fleet Increase Market Volatility
Ukraine has claimed strikes on at least two tankers operating as part of Russia’s so-called shadow fleet, a network of vessels used to evade sanctions and move oil covertly.
Additionally, two other Moscow-linked ships have been attacked since the end of last week, escalating anxiety among shipowners, charterers, and global insurers.
According to Munro Anderson, Head of Operations at Vessel Protect (part of Pen Underwriting):
“For Russian port calls, underwriters are pricing in a broader range of possible strike locations and a higher likelihood of repetition. As strikes escalate, so does the probability of Russian retaliation against ships connected to Ukraine.”
This heightened threat environment has contributed directly to rising premiums, tightening policy wording, and increasing scrutiny of vessel ownership structures.
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Escalation Follows Strikes on Russian Oil Infrastructure
The three recent Black Sea blasts come as part of a broader campaign of attacks on Russian energy and oil facilities, increasing operational hazards for commercial shipping. Over the past few weeks, the risks associated with transiting or calling at ports in the region have intensified.
Russian President Vladimir Putin warned on Tuesday that Russia may retaliate, adding further uncertainty to the region’s security outlook and feeding insurer fears of widespread escalation.
Risks Extend Beyond Russia and Ukraine
Even countries not directly involved in the conflict are feeling the impact.
Romania’s defence ministry reported that naval divers were deployed to neutralize a Sea Baby drone, discovered 36 miles east of Constanța. The incident demonstrates how war-related debris, drones, and stray munitions are increasingly threatening shipping lanes across the wider Black Sea basin.
For insurers, this means that regional spillover risks must now be factored into premium calculations, even for vessels that are not calling at Russian or Ukrainian ports.
Insurance Rates Rising in Step with Each New Attack
According to Dylan Mortimer, Marine Hull UK War Leader at Marsh:
War risk rates “have been seen to grow steadily and in direct response to further attacks which appear increasingly to target vessels as well as port and terminal infrastructure.”
Insurers now view the Black Sea as a dynamic, rapidly changing war zone, where each new attack not only elevates risk but also reshapes underwriting appetite across the global marine market.
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Final Thoughts
Given the rising frequency of vessel strikes, ongoing drone activity, and potential Russian retaliation, marine analysts expect war risk premiums to remain elevated throughout 2025.
Shipowners trading in the Black Sea should prepare for:
- Higher premiums and deductibles
- Reduced underwriting capacity
- Stricter voyage declarations
- More detailed vessel ownership and cargo scrutiny
- Possible exclusions for certain ports or trade lanes
With geopolitical tensions escalating, insurers are pricing the Black Sea as one of the world’s highest-risk maritime zones and rates may climb even further if attacks continue.
