Some trade credit insurers will be adjusting their underwriting strategy
Trade credit insurers have been pulling back from insuring goods or services that are being exported to Ukraine and Russia due to the ongoing conflict, which escalated in February 2022.
According to Reuters, the move will heap additional pressure on Russia’s economy, which has already been hit by a plethora of sanctions.
Nick Robson, global leader of credit specialties at Marsh, said: “In this last week, trade credit insurers will have paused supporting new risk for Ukraine and Russia.”
In addition, payment operators Visa, American Express and Mastercard suspended operations with Russia on 6 March 2022, which has made insurers nervous about whether exported goods might go unpaid for.
Allianz-owned Euler Hermes stated: “Given the current context and the strong uncertainty about what will happen next, we are adjusting our underwriting strategy to the gravity and the emergency of the situation.”
Trade credit insurance carries a war exclusion, which means that policyholders cannot claim for war-related losses.
The global trade credit insurance market underwrites nearly $3tr, according to the International Credit Insurance and Surety Association.
Insurance Times has contacted Atradius for comment.