EU Commission Introduces New Insurance Requirement for Ships in Mandatory Reporting Areas

On 19 February 2025, the European Commission agreed a new measure amending Directive 2002/59/EC, which if/once passes through the EU’s legislative process, would bring into effect a new requirement for all ships entering areas of mandatory ship reporting systems (MRS), even those transiting the EU coastlines without entering an EU port, to provide proof of adequate insurance. The EU Commission press release indicates that the purpose of the measure is to promote safer and more secure maritime transport, including addressing the risks posed by the so-called “shadow fleet”. The Managers will monitor and provide updates.