Marine and air insurance premiums more than double as policyholders feel affected by war in Ukraine

Monday, May 30, 2022 5:53 PM

The cost of insuring some marine and aviation companies has more than doubled due to rising costs and risks associated with the war in Ukraine.

Global insurance premiums rose 11% in the first quarter of 2022 as conflict in Ukraine pushed up insurance costs around the world, Reuters said.

However, insurance costs have risen in particular in certain sectors – particularly in the navy and aviation sectors – as insurers seek to recoup war-related losses.

The increases come as analysts said the global insurance sector could lose between $16 billion and $35 billion due to the war in Ukraine, with losses in the aviation sector alone expected to hit $15 billion. of dollars.

Specialty insurance brokers, dealing with aviation, marine, trade credit, political risk and cybersecurity, could be particularly affected by the war.

The warnings come as some aircraft lessors are now being forced to pay up to 10 times their original premiums, due to risks from their exposure to Russia, after the Kremlin plans to seize hundreds of planes belonging to the West.

Shipping companies are also seeing their premiums soar, insurers having expanded the areas considered dangerous, due to the war in Ukraine.

Tariffs for ships entering Russian waters have also risen by 50% after Lloyds classified all Russian ports as high risk.

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