European Union sanctions on Iranian oil will lead to a reduction in the Persian Gulf nation’s exports as tanker owners won’t be able to insure ships visiting the country, said Simon Schnorr, the London-based marine client director at Aon Risk Solutions, a unit of the world’s largest insurance broker.
The 27-nation bloc agreed Jan. 23 to bar the purchase, transport, financing and insurance of Iranian oil exports. Tanker owners will struggle to find insurance that doesn’t comply with EU law because the London-based International Group of P&I Clubs insures 95 percent of the fleet and other companies probably won’t have the funds needed to meet the “standard cover provision” of $1 billion for pollution liabilities, Schnorr said Jan. 26. Following are comments Schnorr made by phone today.
“Less oil will be shipped out of Iran because ship owners won’t be able to do it without losing their insurance. As soon as a ship engages in a voyage to Iran, its cover will be null and void.”