Denmark is preparing to allocate nearly $1 billion to insure its merchant fleet in the event of war or major geopolitical crises, Bloomberg reports.
The initiative is a proactive measure to ensure coverage if commercial insurance becomes unavailable, and it reflects growing global tensions and instability. According to Bloomberg, the Danish government aims to establish a state-backed war insurance scheme through legislation to be presented to parliament later this year.
This would involve activating the War Insurance Institute, a public entity, and providing it with access to a 6 billion-krone loan facility for potential claims.
As a key maritime nation, Denmark has a merchant fleet worth over 135 billion kroner ($20 billion), and it is home to shipping giant A.P. Moller-Maersk.
