Ship Recycling Insurance Explained: Managing Market, Political, and Compliance Risk (Part 2)

In Part 2 of Ship Recycling Insurance Explained, Jamie Dalzell and Paulina, Head of Insurance at GMS, examine how insurance helps manage market volatility, political risk, and compliance pressures in global ship recycling. Many recycling destinations face currency restrictions, regulatory challenges, and shifting geopolitical conditions, and this episode explains how structured insurance programs provide stability and protection throughout the final voyage. Paulina outlines how GMS works with global reinsurers, A rated insurance markets, and experienced local correspondents to secure reliable coverage, even in complex jurisdictions. She also discusses how tailored policy wording addresses sanctions, convertibility and enforceability concerns, and the wider risk environment surrounding ship recycling. The episode highlights the growing influence of ESG standards and how insurance supports verification of safe manning, pollution safeguards, and green recycling requirements. Topics include: • Structuring insurance in markets with currency or political instability • Using strong reinsurance capacity to protect voyage and liability exposure • Managing sanctions, convertibility, and enforceability risk • Insurance as verification of ESG and responsible recycling standards • Coordination between insurance, trading, and operations teams • Monitoring routing, weather, warranties, COFR, SOR, and P and I entries • Emerging risks shaping the next phase of global ship recycling This episode shows how insurance helps GMS navigate uncertainty and maintain safe, compliant, and responsible recycling operations across multiple jurisdictions.