Copenhagen – In a bold move to future-proof its maritime sector, Denmark is preparing to launch a $1 billion state-backed war insurance program aimed at protecting its merchant shipping fleet from geopolitical disruptions and potential war scenarios.
The initiative, described by Danish officials as a “necessary precaution,” comes amid increasing global unrest, including war in Europe and tensions across the Asia-Pacific region. The proposed legislation would provide emergency insurance coverage for Danish-flagged vessels if traditional commercial policies become unavailable due to conflict or crisis.
Under the plan, Denmark’s War Insurance Institute—a public insurance body—would be reactivated and granted access to a 6 billion kroner loan facility (approx. $860 million). This fund would be used to settle claims for damages or losses should a major conflict affect merchant shipping operations.
The strategy reflects Denmark’s commitment to maintaining maritime resilience. As home to shipping powerhouse A.P. Moller-Maersk, the country plays a crucial role in global trade. Denmark's merchant fleet, valued at over $20 billion, is among the most advanced in the world.
Business Minister Morten Bødskov emphasized the importance of readiness in today’s volatile landscape:
"We can’t afford to be reactive when threats arise. This is about ensuring that Danish shipping keeps moving—even in worst-case scenarios."
The legislation is expected to be presented to parliament later this year, and if approved, would set a precedent for other seafaring nations facing similar maritime security challenges.
This move by Denmark underscores a growing awareness of the vulnerabilities in global shipping, particularly in times of heightened geopolitical tension. By proactively establishing a state-backed war insurance program, Denmark is taking decisive action to safeguard its maritime assets from the risk of insurance market collapse during conflict. This not only secures the operational continuity of its merchant fleet—essential for maintaining global supply chains—but also positions the country as a leader in maritime crisis preparedness. The initiative could serve as a strategic model for other seafaring nations looking to bolster their shipping sectors against an increasingly unpredictable world.
