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The Russia-Ukraine crisis has resulted in tragic losses of life, the displacement of hundreds of thousands of people, and political and economic disruptions on a global scale. Here you’ll find information and insights, along with strategies and guidance, that can help you navigate these challenges.
FAQs
The current situation is ongoing and dynamic. Since it will continue to evolve and unfold, conditions may change over time. Furthermore, each company’s situation, coverage, and potential circumstances will vary.
In the event of any exposure to sanctioned individuals, entities, or goods and services, companies may find that cover may be limited, and (re)insurers may be unable to settle claims in the event they determine that doing so would expose them or their affiliates to applicable sanctions or penalties. Each claim would need to be reviewed on a case-by-case basis, taking into account the details of the claim and applicable sanctions.
Please consult your Marsh representative to determine how your coverage might respond to current circumstances.
It is difficult to say how an insurance policy will respond ahead of an actual event. To understand more about how current circumstances may or may not impact your cyber insurance policy/program, please reach out to your Marsh cyber broker.
We are actively monitoring the situation as it continues to unfold, and we are handling inquiries on a case-by-case basis at this time.
As of February 24, 2022, martial law is in place across Ukraine. This means that suppliers of goods and services to Ukraine cannot be paid until the moratorium is lifted unless such payment is for goods and services that support the mobilization of forces to defend Ukraine. A moratorium on foreign currency payments is a relatively “normal” action for a country in conflict to protect the domestic financial system for as long as possible.
This moratorium will impact most payments. As a consequence, we expect credit insurers will suspend all credit cover on Ukrainian companies (for credit-insured suppliers to those companies). We also anticipate that under trade credit policies that include political risk cover, claims will begin to be made for payments due from Ukraine but are unable to be completed.
Companies should anticipate that some insurers may issue notices of cancellation for marine hull war and strikes coverage. How a specific policy may respond in a specific situation depends on several factors, such as whether it is a sanctions issue related to the countries or companies involved, or embargoed goods, or a war/strike issue, and what loss control/risk mitigation may be in place.
You should reach out directly to your Marsh representative to understand specific coverage impacts.
- Cybersecurity
- Supply chain
- Sanctions
Cybersecurity
Organizations concerned about the possibility of cyberattacks should seek to align their organization on their potential cyber risks, risk management approach, and available resources to guide their enterprise-wide cyber resilience journey. By doing so, if a cyberattack happens, there can be a more efficient and effective response and outcome.
Supply chain
Organizations reliant on agricultural products and manufactured goods from Ukraine and Russia may now find themselves unable to access those supplies due to the conflict, closed airspace and waterways, and sanctions. Current stocks should be reviewed and consideration given to alternative suppliers. Consideration also should be given to supply chain cyber exposures.
Sanctions
Sanctions will be escalating and will affect many businesses with Russian operations. Banking and financial services in general, including insurance, will be most directly and immediately impacted. However, any business with suppliers, customers, or staff in Russia will have to manage sanctions, and make short-, medium-, and longer-term decisions about any commercial activity in the region.
