Munich Re Risk Solutions Ireland

Explore Munich Re Group

Get to know our Group companies, branches and subsidiaries worldwide.

Cargo War and Strikes Risks Update | 20 October 2023

2023/10/12

    alt txt

    properties.trackTitle

    properties.trackSubtitle

    This information does not form part of the terms and conditions of any policy of insurance and is provided solely to help cargo policyholders and brokers understand the circumstances in which war and strikes cover will be subject to a surcharge premium or may not be available at all; it should not be used as a substitute for independent professional or legal advice.

    This document provides information for existing policyholders and their brokers. Policyholders who have questions or wish to arrange or amend cover should contact their broker. Brokers can find details of how to contact us here.

    The current situation in Ukraine and the related sanctions and export controls are widely known, and many businesses will be unwilling or unable to ship goods to or from the affected region.

    War and strikes cover to the region is not automatically available.

    The current situation in Israel and Gaza is widely known, and many businesses will be unwilling or unable to ship goods to or from the affected region.

    War and strikes cover to the region is not automatically available.

    For Cargo Insurance policies arranged by Munich Re Risk Solutions Ireland, the availability of cover against war and strikes risks is determined by Munich Re Syndicate Ltd (MRSL) by reference to the risk levels within the JCC Cargo Watch List, which are established independently by S&P Global (formerly IHS Markit) for the Joint Cargo Committee of Lloyd’s and the IUA (commonly known as “the JCC”).

    Other considerations are also used in determining whether cover is available; examples include UK and international sanctions, internal controls and risk appetite.

    The geopolitical situation in every country and territory is continually monitored by S&P Global, and their risk scores are updated monthly, or more frequently if there is particular conflict, unrest or political instability.

    There are seven risk levels that correspond to the risk scores:

    • Low – 0.0 to 0.7
    • Moderate – 0.8 to 1.5
    • Elevated – 1.6 to 2.3
    • High – 2.4 to 3.1
    • Very High – 3.2 to 4.3
    • Severe – 4.4 to 6.4
    • Extreme – 6.5 and higher

    The most recent update to the JCC Cargo Watch List that resulted in risk level changes was on 11 October 2023:

    • Israel Very High 3.2 from High 3.0: Rising risk of Hizbullah intervening in the current Israel-Gaza war, increasing risks on ground cargo and related infrastructure, probable targeting of ports and marine assets, airports, and accidental shootdown risks from rockets.
    • Palestinian Territories Severe 4.6 from Very High 4.0: Ongoing Israel-Gaza war and likely ground incursion significantly raises risks of IDF targeting ground cargo-related assets, damage to aviation assets, and accidental shootdown to aircraft in or very near Gazan airspace.

    Corresponding MRSL rate changes take effect from 09:00 GMT on 20 October 2023.

    Cover

    Details of the cover provided against war and strikes risks can be found in the policy wording and/or the applicable Institute War Clauses and/or Institute Strikes Clauses which form part of the policy.

    If countries or territories are in the news because of events like war or civil unrest, then it can be considered likely that exposures will at the very least be subject to additional premium. And in particular, for those classified as Very High, Severe or Extreme by S&P Global (a risk score of 3.2 or higher), the availability of war and strikes cover must be checked in advance, as explained below.

    Information about risks posed worldwide is available from various sources, including cia.gov/the-world-factbook/

    Application

    For most countries and territories, Munich Re Risk Solutions Ireland premiums are inclusive of MRSL’s basic rate for war and strikes risks cover, the exceptions being:

    • Where covered, countries and territories for which the Risk Level is Elevated or High (a risk score between 1.6 and 3.1) will be subject to a surcharge rate which will be determined on a case-by-case basis based on the risk score applying at the time of shipment.
    • The availability of cover (if any), the terms and conditions and the rate for countries and territories where the Risk Level is Very High, Severe or Extreme (a risk score of 3.2 or higher) is subject to change, and will only be determined at the time of shipment or the attachment of risk; prior notice of any such shipments or exposures must be given to us.

    Full details of the countries and territories within these groups can be found below.

    This information is valid until the next change in the JCC Cargo Watch List, which is reviewed every month, or more frequently at times of heightened tension.

    The surcharge rate or the availability of cover (if any) is applied in the following way:

    • For transits, at the time transit commences.
    • For storage that is not in the ordinary course of transit, if insured, by reference to the most recent update to the JCC Cargo Watch List on an ongoing basis (SRCC cover only).

    Note

    Cover for sendings of bulk oil/petrochemical interests including LNG and LPG transiting through the Persian Gulf/Gulf of Oman, irrespective of the destination country and where it sits within the JCC Cargo Watch List is not available.

    The insurance of goods within or shipped to, from, via or through the following countries and territories is subject to additional premium at a rate that is available on request:

    • Argentina
    • Bangladesh
    • Brazil
    • Burkina Faso
    • Burundi
    • Cameroon
    • Colombia
    • Democratic Republic of the Congo
    • Egypt
    • Eritrea
    • Ethiopia
    • Georgia
    • Guinea
    • India
    • Indonesia
    • Iran
    • Ivory Coast
    • Kenya
    • Mexico
    • Mozambique
    • North Korea
    • Pakistan
    • Peru
    • Qatar
    • Russia (except the region noted below)
    • South Korea
    • Turkey
    • United Arab Emirates
    • Venezuela

    The availability of cover (if any), the terms and conditions and the additional premium rate for the insurance of goods within or shipped to, from, via or through the following countries and territories is subject to change, and will only be determined at the time of shipment or the attachment of risk; prior notice of any such shipments or exposures must be given to us.

    • Afghanistan
    • Central African Republic
    • Chad
    • Iraq
    • Israel
    • Lebanon
    • Libya
    • Mali
    • Niger
    • Nigeria
    • Occupied Palestinian Territory (being the area defined by the EU and the UN as the Gaza Strip and the West Bank, including East Jerusalem)
    • Persian or Arabian Gulf and adjacent waters including the Gulf of Oman west of Longitude 58°E, in respect of bulk oil and petrochemical products including LNG and LPG
    • Russia (within 200km of land border with Ukraine plus Black Sea within territorial waters)
    • Saudi Arabia
    • Somalia
    • South Sudan
    • Sudan
    • Syria
    • Ukraine
    • Yemen

    Contact

    Policyholders who have questions or wish to arrange or amend cover should contact their broker.

    For more information about war and strikes or cargo insurance, brokers can contact their Munich Re Risk Solutions Ireland cargo specialist.

    Any description is for general information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any product. Policyholders who have questions or wish to arrange or amend cover should contact their insurance broker. Insurance brokers can find details of how to contact us  here.

    Any descriptions of coverage contained are meant to be general in nature and do not include nor are intended to include all of the actual terms, benefits, and limitations found in an insurance policy. The terms of any specific policy will instead govern that policy. Any guidance is intended to provide general information only, and should not be used as a substitute for legal advice.