India is evaluating proposals from four Russian insurance providers seeking clearance to underwrite crude oil tanker risks at Indian ports, part of a broader strategy to maintain stable energy imports amid continuing geopolitical complexities.
Individuals familiar with the matter told Bloomberg that applications have been submitted to India’s Ministry of Ports, Shipping, and Waterways by Sberbank Insurance, Balance Insurance, Ugoria Insurance, and ASTK.
These firms are pursuing authorisation to issue protection and indemnity (P&I) cover, which includes liabilities related to pollution, collisions, and cargo damage for vessels transporting Russian crude.
While India has continued sourcing discounted oil from Russia despite Western sanctions, the facilitation of insurance coverage has become a critical component in sustaining the trade.
The additional approvals, if granted, would support the operational needs of tankers navigating this corridor, especially those currently underserved by sanctioned insurers.
Crude oil shipments from Russia to India are anticipated to reach approximately 2.15 million barrels per day in April, based on estimates from market intelligence platform Kpler. This marks the highest monthly volume since May of last year, following a temporary drop in February attributed to logistical disruptions after recent US sanctions were imposed on key entities.
These regulatory developments coincide with wider shifts in global marine insurance trends.
According to Gallagher Specialty’s Q2 2025 market update, underwriters in the hull and machinery (H&M) segment are facing mounting competitive pressure, particularly in London, leading to softening rates for high-performing fleets.
Despite this trend, the brokerage noted that premium levels in some areas continue to lag behind technical adequacy.
The analysis also warned that rapid expansion by multiple insurers could disrupt rate stability across the sector. As companies pursue aggressive growth, pricing discipline may erode, particularly if they shift focus from premium clients to riskier business to meet volume targets.
Claim costs are rising, Gallagher said, with repair-related inflation – such as higher steel prices and limited shipyard availability – adding to the severity of losses, especially from machinery failures.
The report also noted persistent threats in high-conflict zones. Tensions in the Middle East and the Black Sea continue to influence war risk assessments. Gallagher cited recent disruptions, including a ceasefire breakdown in Gaza and missile strikes on ports like Odessa, which have caused vessel damage and casualties.
In parallel, older Russian tankers operating with obscured ownership – commonly referred to as the “shadow fleet” – remain active, complicating risk assessments and regulatory compliance. These vessels, often used to bypass Western sanctions, represent a growing concern for underwriters.
Separately, piracy off East Africa has resurfaced, with two hijackings reported this year. In March, the AL-HIDAYA, a vessel registered in Yemen, was seized off Somalia, following a similar incident in February. These cases are reshaping risk maps for maritime insurers.
