Shippingtelegraph: Sanctions, tariffs, military flashpoints the new normal for marine insurance

Gothenburg marine insurer, The Swedish Club, warns that the new normal for marine insurance is geopolitical volatility.

The shipping industry must accept that geopolitical instability is now a permanent part of the operating environment, according to Thomas Nordberg, managing director of The Swedish Club.

The Swedish Club, which has enhanced its risk advising and monitoring capacity, says the role of marine insurers is “shifting,” with global tensions affecting shipping routes, contract structures, and investment markets.

“Sanctions, tariffs and military flashpoints are no longer rare events. They affect the movement of ships, the enforceability of contracts and even what insurers are legally permitted to support,” said Nordberg. “Our priority is to understand what is happening and to help our members make informed decisions in complex and fast-changing situations.”

The Club notes that sanctions can directly restrict an insurer’s ability to provide cover, while tariffs and political disruptions force owners to reroute or renegotiate. Although these changes often do not trigger large increases in liabilities, they do create operational pressure, particularly in relation to cargo exposure and delivery delays.

The Swedish Club now says that its chief risk officer works closely with underwriters and legal teams to assess geopolitical scenarios and provide real-time advice to its members.

This includes support on contractual issues, such as how rerouting or delayed cargoes may impact existing charter party terms.

Nordberg explained: “Our role is not just to provide insurance but to help members navigate risk. That means close dialogue and timely advice. When routes change or new obligations arise, we are there to assess the implications and help members protect their position.”

While competitive sensitivities can limit information-sharing between P&I Clubs, Nordberg believes the industry should take a more unified approach to risk.

He said: “When it comes to data sharing or insight, there is always room for more collaboration in the industry. Geopolitical disruption affects us all, and it makes sense to address it as a shared challenge.”

As geopolitical conflict increasingly includes digital warfare, The Swedish Club has developed cyber insurance products to meet member demand.

Furthermore, the managing director emphasised the link between geopolitics and investment performance: “Geopolitical events often trigger immediate reactions in global markets. That makes it essential for insurers to remain alert, well-informed and ready to adapt their strategies as conditions evolve.”