Hong Kong ship insurers unable to fill void in Iran oil cover
After EU sanctions take effect from July Hong Kong maritime insurers will not provide full cover to tankers carrying Iranian oil after EU sanctions take effect from July, a senior industry official told Reuters, another blow to Chinese importers struggling to find ways around the measures. As more insurers confirm they will soon halt or sharply reduce coverage to tankers operating in Iran, China's government may need to step in and take the risk to get contracted crude supplies from Tehran, said Arthur Bowring, managing director of the Hong Kong Shipowners Association. China is the top buyer of Iranian crude.Bowring's comments come days after officials at China's P&I club, which covers more than 1,000 ships, told Reuters the insurer would not extend cover to tankers carrying Iranian oil when the new EU sanctions come into force. "For the liability coverage that we now need, the reinsurance is essential and that comes from the international market, which of course is affected by the sanctions," said Bowring.The association represents shipowners who receive insurance coverage for more than 2,000 ships. Reinsurance helps spread the risk when the coverage surpasses what commercial insurers can handle. The EU sanctions on Tehran will close off the ...
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