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Indian insurers may remain largely insulated from the ongoing invasion of Ukraine by Russia with limited exposure to the two countries, insurers said, adding that war as a risk is an exclusion from most general insurance covers.
Coverage for shipments to and from ports in the Black Sea is difficult for now but premium rates have not increased, they added.
War as a risk
“There is not much exposure of Indian general insurers to Ukraine, where Russian invasion has led to widescale destruction. Even in Russia, there would be limited exposure but given the sanctions on the country, there is a question over the insurance covers,” said G Srinivasan, Director, National Insurance Academy.
In many policies, the event to war is excluded for insurance against property damage and personal accident, he further said.
In some marine insurance covers, war can be included as a risk by paying additional premium, another insurer said.
“We are waiting and watching on possible implications but as of now, there has not been a severe impact from the conflict on Indian insurers,” the source said, adding that premium rates have not shot up significantly.
Shipments from the region are low, insurers said, adding that India does not import a large amount of crude oil from Russia.
In the case of the sanctions on Iran, local insurers there had stepped up to provide cover for shipments, he further noted, adding that at the time, many Indian insurers were not giving out policies for shipments from the country.
Reinsurance risks limited
Even in terms of reinsurance, the risks are very limited, experts said.
State-run reinsurer General Insurance Corporation has a subsidiary in in Russia called Perestrakhovanie LLC, Moscow, but its overall operation is very small in GIC Re’s overall business.
According to its website, the subsidiary provides inward reinsurance for risks from Russia and former USSR territories including Belarus, Ukraine, Georgia, Armenia, Azerbaijan, Uzbekistan, Turkmenistan, Tajikistan, Moldova, Kazakhstan and Kyrgyzstan.
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