Danish Shipping has welcomed a new legislative proposal aimed at activating the War Insurance Institute, a move that will ensure the Danish merchant fleet remains insured and operational in the event of war. According to Anne H. Steffensen, CEO of Danish Shipping, “The timing is exactly right for the activation of the War Insurance Institute. It’s always wise to be well insured.” The proposal includes a state loan guarantee of six billion kroner to ensure the Institute has sufficient liquidity upon activation. This loan will be repaid through contributions from shipping companies when the Institute is activated.
The Importance of War Insurance
In extraordinary situations where Denmark and Danish shipping are severely impacted by war, and the commercial insurance market collapses, the War Insurance Institute will guarantee that the Danish merchant fleet remains insured. This benefits both Denmark and shipping companies, as Denmark is among the world’s largest maritime nations, and maintaining the operations of the Danish merchant fleet is crucial for Danish jobs and economic growth.
Morten Bødskov, Minister for Industry, Business and Financial Affairs, emphasized the importance of being prepared for uncertain scenarios. “We live in a more uncertain world. There are global tensions and war on European soil. That’s why it’s important that we are prepared – even for the most unpleasant scenarios.” The legislative proposal is expected to be presented in October after being sent for consultation.
The War Insurance Institute is designed to be a safety net for the Danish merchant fleet, ensuring its continued operation during times of war. This development comes as global tensions rise, and the need for such insurance schemes becomes more apparent. The proposal has been met with support from Danish Shipping, highlighting the collaborative effort to safeguard Denmark’s maritime interests.
