Insurance plan avoids US firms

GLOBAL shipping insurers had devised a way to ensure nearly full coverage for Iranian oil exports from next month after striking a deal to provide cover without involving US-domiciled re-insurers, officials in Tokyo and London said. The reluctance of US firms to handle Iranian goods had greatly limited the number of re-insurers of cargoes, but the new arrangements – which allow re-insurance of ships without involving US firms – should boost the number of eligible shipments. That will provide a boon to Iran, trying to raise oil exports after most sanctions were lifted last year, though banking restrictions still remain in place. Andrew Bardot, the secretary and executive officer at the International Group (IG) of P&I Clubs, said: “There will be no US-domiciled re-insurer participation on the 2017 IG re-insurance programme.” The new arrangements would take effect on February 20, he and other officials said.