Denmark proposes state-backed insurance for commercial fleet amid growing geopolitical risks

The Danish government has unveiled a draft bill aimed at providing state-backed insurance for the country’s commercial fleet in the event of military conflicts, whether involving third parties or directly impacting Denmark itself.

The proposed legislation will be presented to Parliament in October 2025, following a series of public consultations, Caliber.Az reports via Russian media.

Danish Minister for Industry, Business and Financial Affairs Morten Bødskov emphasised the urgency of the bill in light of increasing geopolitical instability and the ongoing conflict in Europe. Bødskov stated that it was essential for Denmark’s commercial fleet to operate without disruption, even in the most extreme circumstances, emphasising the need to safeguard the nation’s maritime sector.

The bill outlines the provision of a government-backed credit of 6 billion Danish kroner (approximately $1 billion) to the Danish Institute of Military Insurance. This fund would be used to compensate for potential losses caused by military actions. However, the funds would remain dormant during peacetime and would not be accessed unless the need arises due to conflict. Denmark’s maritime sector is one of the largest in the world, with the commercial fleet valued at over 135 billion Danish kroner ($20 billion) by the end of 2023.

By Naila Huseynova