Insurance rates jump for Ukraine war-exposed business, sources say

Insurance premiums are doubling or more for some aviation and marine business particularly exposed to the war in Ukraine, increasing costs for airline and shipping firms, industry sources say. Global commercial insurance premiums rose 11% on average in Q1, according to insurance broker Marsh, which said the war was putting upward pressure on rates. But the overall figure masks sharper moves in some sectors, and only covers the first five weeks following the invasion. War is typically excluded from mainstream insurance policies. Customers buy extra war cover on top. Garrett Hanrahan, global head of aviation at Marsh, said aviation war insurance was no longer available for Ukraine, Russia and Belarus as a result of the conflict. For the rest of the world, aviation war cover has doubled, as insurers try to recoup some of their losses, he said. "The hull war market is beginning to reflate itself through rate rises." The conflict, which Russia calls a "special military operation", could lead to insurance losses of $16b-$35b in so-called "specialty" insurance classes such as aviation, marine, trade credit, political risk and cyber, S&P Global said in a report. Aviation insurance claims alone could total $15b, S&P Global said, with hundreds of leased planes stranded in Russia as a result of western sanctions and Russian countermeasures.<br/>