Norway Charges Four Individuals in Fraudulent Insurance Scheme

March 26, 2025
By Sam Chambers

Norwegian authorities have taken significant action against an alleged fraudulent insurance operation known as RO Marine, charging four individuals for their involvement in the issuance of forged insurance documents. This operation reportedly aided vessels within the shadow fleet, allowing them to navigate global waters without proper coverage.

The existence of RO Marine was exposed by NRK, Norway's state broadcaster. The company presented itself as a legitimate insurer, claiming to provide coverage for over 250 vessels and operating from the same Oslo building as the Norwegian Shipowners’ Association.

The charges against the accused include forgery and operating an unauthorized insurance entity. Among those charged, authorities have identified a Russian national, a Bulgarian, and two Norwegians.

The rise of fraudulent insurance entities parallels the growth of the shadow fleet, which has increased in recent years. This shadow fleet, comprised of vessels operating outside the legitimate maritime regulations, has seen a concerning surge since the beginning of the 2020s.

In related news, Sirius Mutual Protection & Indemnity Association was issued a cease and desist notice by the U.S. Mississippi Commissioner of Insurance last month, further highlighting the increasing regulatory attention on maritime insurance operations.

Currently, 86% of the global merchant fleet is insured by the twelve Protection and Indemnity (P&I) clubs that form the International Group. This figure has decreased from 95% prior to the full-scale invasion of Ukraine by Russia three years ago. Similarly, the tonnage classified under the established members of the International Association of Classification Societies (IACS) has also decreased by two percentage points in the same timeframe, now standing at 92%.

According to analytics firm Kpler, over 5,000 vessels—representing 14.5% of the global merchant fleet—operate under registries with less than 10% ratification of International Maritime Organization (IMO) and International Labour Organization (ILO) conventions. This situation heightens the risk of enforcement actions against these vessels.

Dimitris Ampatzidis, a risk and compliance analyst at Kpler, commented on the implications of using high-risk flags in evasive maritime practices. He noted that "flag risks are increasingly shaping maritime due diligence," affecting regulatory scrutiny, financial risks, and operational integrity. Furthermore, the report indicated that operations of sanctioned vessels have doubled since early 2023, with over 600 sanctioned vessels currently operating under high-risk flags.

This information raises significant concerns regarding compliance and regulatory practices in the maritime industry as authorities work to clamp down on fraudulent operations.

For further updates on this developing story, please stay tuned.