Global shipping insurers have devised a way to ensure nearly full coverage for Iranian oil exports from next month, a report said.
An official in London told Reuters that global shipping insurers will provide cover to Iran’s oil exports without involving US-domiciled reinsurers.
“There will be no US-domiciled reinsurer participation on the 2017 IG reinsurance program,” Andrew Bardot, secretary and executive officer at the International Group (IG) of P&I Clubs in London said.
The new arrangements will take effect on Feb. 20, he said.
“This will substantially address the potential shortfall in reinsurance recoveries in the event of Iranian-related claims,” Bardot said in an email.
Restrictions on US firms handling Iranian goods had greatly limited the number of reinsurers of cargoes, but the new arrangements – which essentially allow re-insurance of ships without the involvement of US firms – should boost the number of eligible shipments.
(Source: Tasnim, under Creative Commons licence)