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

In the wake of the Russian invasion of Ukraine, representations and warranties insurance (RWI) markets are mitigating or reducing exposure to risks in the affected regions, CAC Specialty said in a report. 

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

As per the report, which is based on feedback from several RWI underwriters, underwriters are now declining the deals in the region and in some cases are subjecting them to severely heightened underwriting scrutiny. 

“For underwriters that historically offered terms on deals with exposure in these areas, responses at the quoting stage now range from immediate declinations for submissions with any exposure in Russia, Ukraine, or Belarus, on the one hand, to consideration on a case-by-case basis with an underwriting microscope over any nexus with the region, on the other,” CAC said in its report. 

For the regions exposed to conflict, underwrites had always heightened due diligence expectations but now they are “looking for diligence to confirm the deal poses essentially no risk arising from the current war or political fallout,” the report added.

Additionally, for underwriting, all markets will be tightening their scrutiny for any exposure to the region irrespective of how immaterial it is.

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.

The scrutiny will cover ownership structure, customer base, contracts, supply chain, personnel, operations and IT-related matters. 

In the near term, the best-case underwriting scenario will be a quote with broad exclusions for all operations and exposure to the region. 

Most RWI underwriters implementing broad exclusion intend to be commercially reasonable and flexible in altering or pulling back the exclusion. 

As per the report, only one underwriter stated that its new exclusion is a non-negotiable requirement.