Good Risk Management focuses on identifying and treating defined risks and should be a continuous and developing process embedded in a company’s HR and wider Benefits strategy.

Insurers, insurance brokers, shipowners and charterers will now be required to check the price of Russian oil cargoes on board ships they own, charter or insure.

The international insurance industry is no longer willing to agree on coverage for Russia and Belarus. The options for coverage in Ukraine are very limited.

The European insurance markets are not providing any new covers for property and business interruption risks in the Russian Federation, Belarus and in Ukraine.

The current military conflict between Russia and Ukraine can easily be classified as war for the question of the interpretation of insurance conditions.

Since the start of the war in Ukraine, fears of cyber-attacks due to parallel hybrid war are increasing. In this article we explain how the insurance industry is reacting and how the war clause affects conditions.

For many insurance buyers in Europe Terrorism and Political Violence Insurance remains a niche coverage, although it is often required by financing banks or investors.

The war in Ukraine and economic sanctions against Russia have so far had a drastic impact on the insurance industry.

Even if the “passive war risk” is covered: the crucial question is whether insurance claims can be made locally in an area touched by war and which service can be provided by the insurer.

The dangers of war and strike are excluded in the “all risks” coverage, but they are usually included in the individual policies with additional clauses.

EU sanctions prohibit any direct or indirect economic interactions (prohibition of payment and provision of services) with listed persons, as well as with all companies in which a listed legal entity or natural person has an ownership interest of 50% or more.

Since Ukraine has declared to be in war and air space has been closed in Russia and Ukraine, the risk exists that evacuations and return flights to the home country for medical reasons cannot take place.

In addition to this general exclusion referring to damage occurred, there exists clause LSW617 that restricts the validity of cover itself: there is generally no cover for various named high-risk and existing crisis and war zones.

In view of the current developments in Ukraine and the unforeseeable consequences, the private credit insurers are not providing any new or additional cover on Russian and Ukrainian buyers for the time being.

It is a principle of insurance that due to the potential accumulation of claims there is a general exclusion of damage caused to a risk (buildings, factories, their technical equipment, installations, stocks and other contents) in connection with war and civil war.

The conflict between Russia and Ukraine and the threat of heavy sanctions to be imposed by the Western world as consequence of Russian military action, have brought the topic of financial sanctions and the position of insurance again into the focus of consideration.