Yet this may not happen, because
This is only one of the many ways in which Western insurance are affected by the war in
Insurance and geopolitics
The insurance industry eclipses the GDP of every country in the world except
We’re all used to thinking that insurance companies protect people and businesses from risk, but behind that lies another set of specialist companies called reinsurers. These players insure the risks of insurance companies against, for example, losses resulting from claims, i.e. they offer insurance taken out on insurance. In some cases, complex insurance and reinsurance networks exist to ensure that the risk is properly protected.
Main insurers and reinsurers by turnover
Before the invasion of
This time around, it’s a whole different level. Complaints have been made on policies related to aviation, maritime transport, trade credit, cyber and political risk. This represents only a relatively modest exposure for the entire industry, but the potential long-term effects are another matter. Since the imposition of Western sanctions in March, major players such as Lloyd’s of
We are now in a situation where the planes of the world no longer pass
Count the cost
Considering the global blow to the western insurance sector by deterioration of relations with
In early April, a report from
industry could be affected by payments on claims for one or even two decades, acting as a brake balance sheets of insurers waiting. Those who have not yet downloaded their Russian business also runs the risk of their policies being seized by the Russian government.
Meanwhile, premiums are rising more and more as insurers seek to make up for their losses, especially in all categories except life insurance. It is said that worldwide aviation insurance premiums have doubled as insurers seek to protect their profit margins. Premiums on tankers and other important goods in the
Another affected area is cyber insurance, which protects against the risk of cyberattacks. With
Russian sanctions and the forced exodus of Western companies from the Russian market leave
The authors do not work for, consult, own stock in, or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.