Routes, contract structures and investment markets are increasingly shaped by geopolitical events – from Houthi attacks in the Red Sea and the resulting voyages around the Cape of Good Hope.
According to Thomas Nordberg, Managing Director of the Swedish Club, the industry must accept that these uncertainties are now an “integral part” of the business environment. The insurer has already adapted to the new situation and expanded its advisory capabilities to better support members in practice.
“Sanctions, tariffs and military crises are no longer a rarity. They affect shipping, the enforceability of contracts and even the legally permissible support from insurers,” says Nordberg. “Our priority is to understand what is happening and help our members make informed decisions in complex and fast-changing situations.”
The club points out that sanctions can directly limit an insurer’s ability to protect, while tariffs and political unrest force shipowners to reroute or renegotiate. Although these shifts may not always cause large increases in liability, they create operational pressures, particularly in managing cargo risks and delivery delays.
To address these challenges, the Swedish Club has expanded its risk advisory and monitoring capabilities, supported by appropriate insurance coverage. The Chief Risk Officer works closely with underwriters and legal departments to assess geopolitical scenarios and advise members in real time. This also includes support on contractual issues, such as the impact of detours or delays on existing charter party terms.
“Our role is not just to offer insurance, but also to help members manage risk,” says Nordberg. “This means close dialog and prompt advice. When routes change or new obligations arise, we are there to assess the impact and help members protect their position.”
Nordberg highlights the importance of collaboration between P&I clubs, noting that while competition limits information sharing, the industry needs a “unified approach to dealing with risk”, they say, “when it comes to data sharing or intelligence, there is always room for more collaboration in the industry. Geopolitical upheaval affects us all and it makes sense to tackle it as a common challenge,” said Nordberg.
The insurer also sees cyber warfare as one of the most pressing threats. In response to rising cyber risks, the Swedish Club now offers insurance products specifically tailored to digital threats.
In conclusion, Mr. Nordberg underlined the link between geopolitics and investment performance: “Geopolitical events often trigger immediate reactions in global markets. It is therefore essential for insurers to be vigilant, well informed and ready to adapt their strategies to changing conditions.”
