LONDON -Russia and Belarus represent less than 1% of business transacted by Lloyd’s of London, the commercial insurance market said, adding that it would look to curtail Russian exposure in several of its specialist insurance classes.
Insurers and reinsurers based in London have already stopped providing cover to Russian airlines following sanctions due to Russia’s invasion of Ukraine.
“We’ll keep deploying our expertise, resources and networks – covering crucial areas like cyber, space and political risk – to help deliver an effective sanctions regime against Russian assets,” Lloyd’s said in a statement on its website dated March 14.
While Russian firms typically use local insurers for commercial insurance policies, these are often reinsured through Lloyd’s, industry sources say.
Companies take out cyber insurance against cyber attacks, while space insurance covers damage to satellites and rockets.
Political risk insurance is typically an add-on to commercial property insurance and can be triggered in the case of issues such as war or nationalisation.
Lloyd’s said it would “continue the frequent conversations we’ve been having with UK and international regulators since the conflict began” to ensure sanctions have maximum impact.
Lloyd’s, made up of around 100 syndicate members, posted gross written premiums totalling 35.5 billion pounds ($46.37 billion) in 2020. Its 2021 annual results are due on March 24.
($1 = 0.7656 pounds)