Insurers Demand Clarity On G7/EU Oil Price Cap

The insurance industry demands additional details from G7/EU on oil price cap, or insurers could stay away from new contracts, according to Reuters.

• Tankers that loaded oil risk being left languishing at sea if insurers do not urgently get clarity on an unfinished G7 and EU plan to cap the price of Russian crude, sources told Reuters.
• "If the time is too short, I think everyone will have a plan B to de-risk, terminate, stay away, not maybe conclude any new contracts until there is some clarity," said George Voloshin, Global Anti-Financial Crime Expert at ACAMS.
• "We need regulation in the G7 community, which is similar, that is, the U.S. - where we have interim guidelines in the meantime - the U.K. and the EU," said Lars Lange, secretary general of the International Union of Marine Insurance (IUMI).
• Concerns are centred around a scenario in which insurers discover that oil in transit at sea, which was believed to have been sold below the price cap, was in fact sold above it. This would trigger the withdrawal of insurance cover and refusal by buyers to accept delivery, leading to financial and logistical issues.