Lloyd’s of London war risk underwriters are holding back reserves for insurance payouts potentially running into hundreds of millions of dollars for ships trapped in Ukraine.
The Lloyd’s primary and reinsurers hold significant exposure for the full value of the dozens of ships that have been unable to leave Ukraine since the war broke out.
Under war risk trapping and blocking clauses, vessels trapped in a war situation can be declared a constructive total loss (CTL) after six or 12 months, depending on the terms.
