Denmark has announced plans to allocate nearly $1 billion to insure its merchant fleet against the risks of war or major geopolitical crises.
The government unveiled the proposal on Thursday, describing it as a proactive measure to safeguard maritime interests should commercial insurance markets fail.
The initiative would activate the War Insurance Institute, a public entity, and grant it access to a 6 billion-krone loan facility to cover claims.
Business Minister Morten Bødskov stated, “There are global tensions and war on European soil. That’s why it’s important that we are prepared – even for the most unpleasant scenarios.”
Denmark, a leading maritime nation and home to A.P. Moller-Maersk A/S, the world’s second-largest container shipping company, had a merchant fleet valued at over 135 billion kroner (approximately $20 billion) at the end of 2023.
The proposed legislation is expected to be presented to the Danish Parliament later this year.
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