Lloyd’s of London risks being heavily impacted by proposed rules that would shut Russian aviation companies out of the UK insurance market.
New legislation proposed by the Treasury is intended to stop UK-based insurance and re-insurance firms from offering contracts to Russian-linked firms.
“Russian companies in the aviation or space industry will now be prevented from making use of UK-based insurance or reinsurance services directly or indirectly,” Chancellor Rishi Sunak tweeted yesterday.
“This measure will severely limit their access to the global insurance and reinsurance market.”
Lloyd’s of London is regarded as being a key piece of a UK market at the forefront of the global aviation, aerospace and marine insurance sectors, with marine insurance yet to be targeted.
“We are in regular communications with the UK government and international regulators and are working closely with the Lloyd’s market to uphold the implementation, at pace, of sanctions applied by governments around the world. We continue to monitor the unfolding situation in Ukraine and our thoughts are first and foremost with those people directly affected,” said Patrick Tiernan, chief of markets at Lloyd’s.
Marine, aviation and transport is one of Lloyd’s biggest markets, behind property and casualty.
Lloyds reported net earned premium of £1.065bn in marine, aviation and transport services in the first half of 2021, with full-year results to be announced later this month.
It earned £40mln in the “rest of Europe” market in that time.