AIG, one of The world’s largest commercial insurance companies, studying cutting Coverage for Russia and Ukraine to shield same from risk of Huge claims as an escalation of sanctions up The war continues on an insurance broker and a familiar source with He said it.
AIG is looking into adding exclusion clauses for Business operating in The region via range of Policies, According to Sources who declined to be determined.
Other major insurance companies also Looking to exclude Russia, Ukraine and even Belarus from a range of The sources said, quoting some insurance companies and policyholders.
Reuters was unable to determine whether the potential cut was in Coverage will apply across all AIG policies in The countries. believer declined to comment.
said Meredith Schnorr, Director director and pioneering electronic brokerage in the United States and Canada at insurance broker Marsh, declining To name insurance companies.
Brokers like Marsh act as intermediaries between corporate clients and insurance companies, sometimes interfering in fee up Policies.
If AIG is cut off back Coverage for Business and companies operating in Russia and Ukraine, it will be first The main insurance company to do so, which may lead to boot way for others follow suits.
While Russia has become a restricted area for Many companies because of the sanctions imposed in waking up of Moscow invasion of Ukraine, some multinational companies still do business there as well in Ukraine in Sectors ranging from agriculture to energy. They need insurance to keep their business open.
local businesses also He depends on insurance for Damage to goods, buildings and vehicles And for injury or loss of life of employees. Reuters could not determine how Much of AIG’s business in Russia and Ukraine were concentrated on local companies.
AIG that registered net Written installments in general total insurance more From 26 billion dollars last yearhas operations in Russia, according to her websiteand he is a pioneer global player in sectors such as energy, construction and cyberspace.
“Non-negotiable”
Penalties on Russia already Forcing insurance companies to withdraw back from coverage of Russian entities and individuals were restricted, while British and European sanctions were imposed on Aviation insurance extends beyond individual companies to all Russian companies.
Insurance brokers such as Aon and Willis Towers Watson have frozen operations in Russia, while reinsurers Munich Re and Swiss Re are among the companies that have said they will not write new business in State, whether or not prospective policyholders are penalized.
But AIG and other insurers are looking to go further, adding wording to insurance policies to exclude coverage for Ukraine, Belarus, Russian and Ukrainian operations of Western companies, industry sources say.
Insurance companies concerned About reputation damage of a job business in Russia illusion also worry for property Damage and late payments in Ukraine, where economy It was destroyed by the war.
Some policy holders already struggling To find insurance.
Francois Malan, President risk A compliance officer at French engineering firm Eiffage said last The week he had to accept the insurance exclusion for Transport of goods in Water near Ukraine.
“It was non-negotiable and it wasn’t a question,” he said of price – It was uncovered.”
Ships navigating the waters around the Black Sea and the Sea of Azov, which includes the coast of Ukraine, need To fight another war risk Insurance, which means paying a separate premium.
Some insurance companies also cutting presentation of This type of Insurance due to increased risks, which includes the presence hit Marine insurance sources say by ballistics or floating mines.
Epidemic playbook
Insurance companies in general add certain types of exclusion in Politics exposed to potential conflict, such as during the Winter Olympics in South Korea, but do not usually exclude entire regions, such as in the case of Ukraine crisis.
The move To exclude dangerous areas of they business Mirror insurance companies behavior After the COVID-19 pandemic.
Face with Losses are estimated at $ 100 billion, and insurance companies rushed to exclude them first COVID-19 then all epidemics of policies.
distance also put up Many premium rates of They reported strong earnings in 2021, second full year of epidemic. Some industry sources say the losses were lower than originally expected result of those actions.
Standard & Poor’s International last Estimated week losses of commercial insurance companies from the Russian-Ukrainian conflict total As much as $35 billion.
Standard & Poor’s said the insurance sectors likely to be most affected are aviation, trade Credit and political risks such as nationalization, cyber and political violence and naval warfare.
Swiss Re . said on Thursday that insurance and reinsurance losses from invasion They are likely to come in About the same as losses from a medium-sized natural disaster such as a hurricane.
AIG, one of The world’s largest commercial insurance companies, studying cutting Coverage for Russia and Ukraine to shield same from risk of Huge claims as an escalation of sanctions up The war continues on an insurance broker and a familiar source with He said it.
AIG is looking into adding exclusion clauses for Business operating in The region via range of Policies, According to Sources who declined to be determined.
Other major insurance companies also Looking to exclude Russia, Ukraine and even Belarus from a range of The sources said, quoting some insurance companies and policyholders.
Reuters was unable to determine whether the potential cut was in Coverage will apply across all AIG policies in The countries. believer declined to comment.
said Meredith Schnorr, Director director and pioneering electronic brokerage in the United States and Canada at insurance broker Marsh, declining To name insurance companies.
Brokers like Marsh act as intermediaries between corporate clients and insurance companies, sometimes interfering in fee up Policies.
If AIG is cut off back Coverage for Business and companies operating in Russia and Ukraine, it will be first The main insurance company to do so, which may lead to boot way for others follow suits.
While Russia has become a restricted area for Many companies because of the sanctions imposed in waking up of Moscow invasion of Ukraine, some multinational companies still do business there as well in Ukraine in Sectors ranging from agriculture to energy. They need insurance to keep their business open.
local businesses also He depends on insurance for Damage to goods, buildings and vehicles And for injury or loss of life of employees. Reuters could not determine how Much of AIG’s business in Russia and Ukraine were concentrated on local companies.
AIG that registered net Written installments in general total insurance more From 26 billion dollars last yearhas operations in Russia, according to her websiteand he is a pioneer global player in sectors such as energy, construction and cyberspace.
“Non-negotiable”
Penalties on Russia already Forcing insurance companies to withdraw back from coverage of Russian entities and individuals were restricted, while British and European sanctions were imposed on Aviation insurance extends beyond individual companies to all Russian companies.
Insurance brokers such as Aon and Willis Towers Watson have frozen operations in Russia, while reinsurers Munich Re and Swiss Re are among the companies that have said they will not write new business in State, whether or not prospective policyholders are penalized.
But AIG and other insurers are looking to go further, adding wording to insurance policies to exclude coverage for Ukraine, Belarus, Russian and Ukrainian operations of Western companies, industry sources say.
Insurance companies concerned About reputation damage of a job business in Russia illusion also worry for property Damage and late payments in Ukraine, where economy It was destroyed by the war.
Some policy holders already struggling To find insurance.
Francois Malan, President risk A compliance officer at French engineering firm Eiffage said last The week he had to accept the insurance exclusion for Transport of goods in Water near Ukraine.
“It was non-negotiable and it wasn’t a question,” he said of price – It was uncovered.”
Ships navigating the waters around the Black Sea and the Sea of Azov, which includes the coast of Ukraine, need To fight another war risk Insurance, which means paying a separate premium.
Some insurance companies also cutting presentation of This type of Insurance due to increased risks, which includes the presence hit Marine insurance sources say by ballistics or floating mines.
Epidemic playbook
Insurance companies in general add certain types of exclusion in Politics exposed to potential conflict, such as during the Winter Olympics in South Korea, but do not usually exclude entire regions, such as in the case of Ukraine crisis.
The move To exclude dangerous areas of they business Mirror insurance companies behavior After the COVID-19 pandemic.
Face with Losses are estimated at $ 100 billion, and insurance companies rushed to exclude them first COVID-19 then all epidemics of policies.
distance also put up Many premium rates of They reported strong earnings in 2021, second full year of epidemic. Some industry sources say the losses were lower than originally expected result of those actions.
Standard & Poor’s International last Estimated week losses of commercial insurance companies from the Russian-Ukrainian conflict total As much as $35 billion.
Standard & Poor’s said the insurance sectors likely to be most affected are aviation, trade Credit and political risks such as nationalization, cyber and political violence and naval warfare.
Swiss Re . said on Thursday that insurance and reinsurance losses from invasion They are likely to come in About the same as losses from a medium-sized natural disaster such as a hurricane.