Implications of Political Instability in Ukraine and Russia
If your company has political risk exposures in either country, you may experience premium rate increases at renewals or difficulties procuring coverage.
Because Russia is the political risk and structured credit insurance market’s largest country exposure, global premiums and insurance capacity for those coverages may be adversely affected if the current conflict causes major insurable losses.
Concern over the political unrest and country credit rating in Ukraine and potential sanctions against Russia have caused some insurers to effectively stop underwriting political risk policies in those two countries, according to political risk experts at Marsh. Current policyholders with exposure in those countries may experience premium rate increases upon policy renewals. Companies looking to conduct new business in Russia may encounter difficulties obtaining coverage; insurers have effectively stopped offering coverage for any new credit or political risk exposures in Ukraine.
Implications of Instability in Ukraine and Russia examines ways for companies to manage political risk insurance programs in those two countries, including:
- The impact of a change in payment terms.
- Important considerations for claims recoveries.
- Multi-country policies.