Ukraine is defying all the odds, so the war and resulting human tragedy in eastern Europe continues to unfold. The war is having huge consequences, firstly for the Ukrainian people, but also for the global economy. Due, to a great extent, to the war, inflation rates are soaring, supply chains are disrupted and food security is under pressure.
For insurers, too, the war has had a range of consequences beyond insured losses affecting aviation, cyber, political risk and marine war business lines. First, there is the need to comply with the massive and unprecedented sanctions imposed by the EU on Russia, which include targeted sanctions on individuals, economic sanctions and visa measures. This is a challenging exercise; one that raises many legal and technical questions that require urgent answers.
Insurance Europe’s role has been as the conduit between the European Commission and the insurance industry; gathering and passing on questions from the industry and then remaining in close contact with the Commission to bring the industry clarity as quickly as possible on its key questions and to reduce the legal uncertainty that companies have been facing.
As the Commission put in place “Solidarity Lanes” to facilitate primarily the export of the Ukrainian grain and other agricultural goods that is so vital to global food security, but also the import and export of other goods, Insurance Europe has supported the Commission, where possible, with insights into the situation on the ground, in particular with regard to the availability of insurance cover. A comprehensive fact-finding exercise carried out by Insurance Europe made clear that, overall, insurers active in Ukraine are willing to provide cover. The situation is, however, volatile and insurers must assess their position on a regular basis.