LONDON (Bloomberg) ? Insurance costs for shipping companies may rise as much as ten percent as underwriters prepare for stricter maritime safety regulations, said AON Corp., the world?s second-biggest insurance broker.

Premiums for so-called protection and indemnity policies will rise as insurers make provisions ahead of rules that will increase shipping companies? liabilities for pollution and crew compensation, AON said in a report.

The increase in cash reserves, made in accordance with by the UK Financial Services Authority, are ?largely voluntary now, but in coming years will become compulsory,? Stephen Hawke, London-based executive director of AON?s marine unit, said in an interview. Higher premiums will affect all types of vessels, he said.

Companies such as Frontline Ltd., the world?s biggest tanker operator by capacity, and Teekay Shipping Corp., will be bound be European Union and United Nations rules on pollution and crew welfare that are taking effect or are under consideration.

The International Maritime Organisation, a UN body, sets limits on the amount of oil that ships can discharge into the sea.

France, Germany and the US have levied fines on companies whose vessels exceed these limits, AON said. France can fine errant ship operators as much as 5 million ($6.45 million). Fines in the US can be as much as $500,000, the report said.

The Maritime Labour Convention, drafted by the International Labour Organisation, could also be an issue for shipowners, Hawke said. The convention proposes to give additional working rights to crews. ?Owners will have to pay whether or not they are negligent,? Hawke said.

?The world is saying let?s deal with the fault at a later date, let?s move to an environment where there?s a non-contestable level of compensation in 70 to 80 percent of cases.?

Insurance for vessels travelling to Lebanon doubled during the recent port blockade, to about 0.25 percent of the value of the ship?s hull, AON said.

Marsh & McLennan Cos., the world?s largest insurance broker, said earlier this month it expects operators of liquefied natural gas carriers will have to pay ten percent to renew insurance policies because of safety concerns and an increase in claims.