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Impacts of Russian- Ukraine war on insurance industry


The Egyptian Insurance Federation confirmed that the insurance industry is essentially a global industry and represents a key part of the global economy and will certainly be affected unless the war stops. It suffices to mention that the English insurance market is one of the largest and most important insurance markets in the world.

Immediately after the outbreak of the war, he declared that the maritime areas in Ukraine and Russia are dangerous areas, which in insurance terms means that the prices of marine insurance have risen significantly, especially in these maritime areas.

The union added, "The Lloyd's Authority in London has formed a committee to follow up on the current events between the two neighboring countries, Russia and Ukraine, and to assess the situation first-hand. The Egyptian Insurance Federation is keen to follow up on developments and monitor the most important possible repercussions of the war."

In its weekly bulletin, the Federation stated that there is no doubt that the outbreak of the Russian-Ukrainian war has direct effects on the insurance markets, and the most affected types of insurance can be considered marine and aviation insurance, and this bulletin deals with insurance wars in marine insurance policies (goods) through Review the following topics:

War risk capacity for insurance

Marine insurance is exceptional in its coverage of war risks, which are considered general risks.

The most important reasons for not considering war risks as among the general risks excluded in marine insurance, is that these risks are not characterized by the focus that they have in property insurance, due to the mobile nature of ships, which negates the idea of ​​accumulation in most stages of the marine journey except for the stage of docking in ports.


Defining war risks in insurance

The dangers of wars are defined as the dangers arising from the use of weapons or military equipment, whether war is declared or not. The war dangers document covers the mines left from previous wars, as well as the losses that arise for seaborne goods from the use of a military weapon even during a maneuver without declaring a state of war.

The impact of the war on the maritime danger 

Undoubtedly, the state of war increases the maritime danger as well, as it makes the conditions of navigation more difficult, and therefore the dangers of war are covered under the terms of the complex to secure wars (goods), which are used as supplementary coverage to the conditions of the complex to secure goods, and therefore war risks are not granted as an independent coverage in Marine insurance, the coverage guaranteed by these conditions includes the following:

War, civil war, revolution, insurrection, rebellion and civil strife arising therefrom, or any hostile act by or against a hostile power.

Seizing, seizing, arresting, stopping, preventing and what arises from it or from attempting to carry it out.

Abandoned mines, torpedoes, bombs or any other weapons of war.

The scope of coverage of war risks is limited to conventional warfare and does not extend to nuclear, biological, chemical or electronic warfare.

Underwriting the dangers of war

War risk underwriting is based on an accurate and rapid assessment of the most dangerous areas in the world and coverage remains in effect at terms and prices determined by the underwriters.

 The Joint Committee for Goods announced that the situation in Ukraine is very dangerous and rapidly developing, and the Arab War Risks Insurance Fund notified its members from companies operating in the Arab insurance markets, with the exception of the Black Sea region, to cover war risks following the repercussions of the Russian war on Ukraine.

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