In view of the rapid developments in the conflict between Russia and Ukraine and military action started on Ukraine territory, GrECo Holding has set up a Task Force responsible for gathering all information on the current crisis and for reactions in all fields of our activities.
We will provide information on all topics and developments linked with the situation on our website for the information of clients and partners. In this we will be supported by our colleagues in the countries concerned and information will also be based on statements obtained from insurers and reinsurers.
For all further information on sanctions please contact GrECo Group Legal, Nathan Pinhasov, email@example.com For any information and questions regarding insurance matters please approach GrECo Group Insurance Mediation Services, Andreas Krebs, firstname.lastname@example.org
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.
As we reported earlier, after the outbreak of the war in Ukraine Russia and Belarus have been cut off from the Western international insurance markets by regulations put into force by both the European Union and the Russian Federation.
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.
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.
The complexity of today´s risk environment is changing at an accelerating pace, making risk management even more challenging. We are therefore pleased to present our new magazine “HORIZON – Risk Thought » Fast Forward” which addresses these challenges by highlighting underlying systemic transformations and their implications for future risk and insurance management in various sectors.
Head of Group Carrier Relations & Insurance Mediation
T +43 664 537 17 42