Ukrainian premiums surpass Iraq war levels, industry sources say

LONDON (Reuters) – Insurance for humanitarian workers, journalists and engineers heading to Ukraine has become more expensive and harder to organize than during the Iraq war.

After initially nervous about offering coverage in the wake of Russia’s invasion of Ukraine in February, several insurers have become more willing to do so in recent months, industry sources say. . .

Alexis Feller, accident and health underwriter at Lloyd’s of London-backed insurer OneAdvent, said: “Premium rates in Ukraine are now higher than they have previously experienced in Iraq and Afghanistan. …mainly a more active conflict zone rather than a riot situation.”

“The instability caused by Ukrainian interests and subsequent Russian military retaliatory actions will have an even more dramatic impact on costs,” he added.

Another Lloyd’s of London-backed insurer, Battleface, claims an average of €3,500 ($3,429) per week for a combination of €250,000 personal accident insurance and €250,000 Ukrainian medical insurance. Senior Underwriter Roger Perry said. Up to €4,375 per week in high-risk areas.

“Our underwriter charges in seven-day tranches…because everything changes very quickly,” he said, adding, “It gets more expensive the further east you go.”

Nevertheless, Battleface excludes Donbass and the Odessa region in the south, two provinces in eastern Ukraine where Russia unilaterally declared part of its territory, but especially for short periods of time, such as one day. can make exceptions.

According to media reports at the time, during the 2003 Iraq War, Lloyd’s of London and other insurance companies conducted daily reviews of premiums charged to cover journalists operating in the Gulf.

A third insurance company said the daily premium for sending journalists to Ukraine’s riskiest areas could be 5-10% of the amount covered. days, most untenable situations.

Typical insurance covers accidental death and amputation, emergency evacuation, repatriation, and overseas medical benefits.

Sources say the organization is sending more media, health workers and reconstruction experts to Ukraine, but insurers and security experts have been on the loose, including in Kyiv, following the attack on a bridge that connects them with Russia. It is particularly concerned about the risks to civilians after missiles rained down on Ukrainian cities.October 8 to the annexed Crimea.

“As resources on the Russian side have changed, they’ve started using things like ballistic missiles and old anti-ship missiles, adapting them for ground attack, but these are much less accurate,” said Regional Security. Coordinator James Dennis said. At Consultants Healix.

The United Nations and other aid organizations in Ukraine said last week that the missile strike had disrupted their humanitarian efforts.

Sally Llewellyn, regional security director at consultant International SOS, said: “The situation outside the areas directly affected by the conflict is precarious as the Ukrainian counterattack intensifies ahead of the expected further Russian mobilization. will remain,” he said.

A shortage of providers has also increased insurance costs, sources said, noting that some US insurers in particular are reluctant to offer Ukrainian insurance.

AIG (AIG.N)Reuters declined to comment earlier this year, but reported that it was creating broad exclusion clauses for Russia and Ukraine.

“Selected insurers are showing willingness to consider doing business in Ukraine,” said Steven Capas, head of government contracting at brokerage Marsh.

“Recent Russian missile attacks in populated areas like Kyiv and Lviv are likely to create new unrest among insurers.”

($1 = 1.0206 EUR)

Edited by John O’Donnell and Kirsten Donovan

Our criteria: Thomson Reuters Trust Principles.

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