Understand the impact of the Ukraine conflict from a cross-sector perspective with the Global Data Executive Briefing: Ukraine Conflict

Russia, Ukraine, and Belarus are no longer included in policies offered by reinsurance firms to insurers, reported Reuters, citing a report from Gallagher Re.

Reinsurers, which provide coverage to insurance firms, are also reducing their exposure to the US hurricanes.

Typically, reinsurance contracts run on a 12-month basis and renew on 1 January but this is the first instance reinsurers have had to end coverage for clients since the Ukraine crisis began in February last year.

Speaking to the news agency, Gallagher Re International chairman James Vickers, the industry has reached an agreement on exclusions, which implies that from 1 January, “it is very difficult to find cover” for the region.

According to industry sources, insurers would likely be even less willing to cover Russia or Ukraine without reinsurance.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Last week, ship insurers said they would stop providing war-risk coverage in Russia, Ukraine, and Belarus.

After suffering significant losses from stranded aircraft in Russia, reinsurers are especially concerned about the aviation sector, the report said. 

Gallagher Re said for some types of businesses, aviation reinsurance rates jumped by up to 200% on 1 January. 

Both Gallagher Re and its peer Guy Carpenter claimed that this year’s reinsurance and insurer renewal conversations had been unusually contentious and that some terms had been settled upon at the last minute.

It’s expected that insurers will pass along any rate increases imposed by reinsurers to their business clients.

Earlier this week, media reports said that the Japanese will continue providing marine war coverage to liquefied natural gas (LNG) ships operating in Russian waters until March.