However, the insurance industry is quite positive when proposals for new business are raised, so it is clear that insurance systems will soon be available for NSR operations. For risk assessment, insurers demand reliable and authentic databases of NSR operations as well as survey data on salvage operations in the event of accidents. Inquiries from a wide range of underwriters would also have to be answered. INSROP activities and the results made a step toward fulfillment of the basic demands of the insurance market. According to INSROP's report, however, further experimental voyages will be vital in compiling operation data into a convincing database (Ostreng et al., 1999). Until a complete picture can be formed, insurance costs cannot be calculated on the basis of the previous business results. Clearly, risk levels in Arctic navigation are bound to be higher than in routes passing through the Suez Canal. The ship insurance is usually assigned to P&I (Protection and Indemnity) and H&M (Hull and Machinery). P&I insurance, including cargo insurance, depends on a ship size and a type of cargo, and H&M insurance compiles with the ship price, taking account for the estimated damage rate. Unfortunately Russia has published no official data of the rate of damages. H&M insurance was then estimated assuming the annual sinking rate in the NSR as 0.1%. H&M fell ultimately in the range of 1.0-2.9 US$/GT. P&I insurance would amount to a further $8/GT, based on INSROP report, and package insurance covering P&I and H&M was set at a round figure of 10US$/GT. This figure is twice the comparable insurance rate prevailing in shipping via the Suez route.
Fuel costs:
Bunker oil prices have fluctuated in the last few years. The heavy fuel oil of 380cSt was assumed to be the fuel, and the average price for the last five years, 91US$/ton, was adopted.
