Global shipping insurers have devised a way to ensure nearly full coverage for Iranian oil exports from next month, a report said.
An official in London told Reuters that global shipping insurers will provide cover to Iran’s oil exports without involving US-domiciled reinsurers.
"There will be no US-domiciled reinsurer participation on the 2017 IG reinsurance program," Andrew Bardot, secretary and executive officer at the International Group (IG) of P&I Clubs in London said on Tuesday.
The new arrangements will take effect on Feb. 20, he said.
"This will substantially address the potential shortfall in reinsurance recoveries in the event of Iranian-related claims," Bardot said in an email.
Restrictions on US firms handling Iranian goods had greatly limited the number of reinsurers of cargoes, but the new arrangements - which essentially allow re-insurance of ships without the involvement of US firms - should boost the number of eligible shipments.