Denmark plans to set aside almost $1 billion to insure its merchant fleet in the event of a war or major crisis.
The government proposed the new legislation as a “timely precaution,” according to a statement on Thursday. The funding would establish a state-backed war insurance plan to cover ships if commercial insurance markets collapse due to geopolitical instability.
Denmark is a major maritime nation, with a merchant fleet valued at more than 135 billion kroner ($20 billion) at the end of 2023, and home to A.P. Moller-Maersk A/S, the world’s second-largest container shipping company.
“There are global tensions and war on European soil,” Business Minister Morten Bodskov said. “That’s why it’s important that we are prepared – even for the most unpleasant scenarios.”
The plan, which is expected to be presented to parliament later this year, involves activating the War Insurance Institute, a public entity, and giving it access to a 6 billion-krone loan facility to cover potential claims.
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