The cost of insuring certain marine and aviation businesses has more than doubled due to rising costs and the risks associated with the war in Ukraine.
Global insurance premiums increased 11 per cent in the first quarter 2022, as conflict in Ukraine pushed up insurance costs worldwide, Reuters said.
However, insurance costs have soared particularly sharply in certain sectors – especially in the marine and aviation sectors – as insurers seek to recoup losses linked to the war.
The increases come as analysts have said the global insurance industry could lose $16bn- $35bn due to the war in Ukraine, with losses in the aviation sector set to hit heights of up to $15bn alone.
Speciality insurance brokers, dealing with aviation, marine, trade credit, political risk, and cyber, could be particularly hard hit by the war.
The warnings come as some aircraft lessors are now being forced to pay up to 10 times their original premiums, due to risks around their exposure to Russia, after the Kremlin set out plans to seize hundreds of western owned planes.
Shipping companies are also seeing their premium soar, as insurers have expanded the areas that are considered dangerous, due to the war in Ukraine.
Rates for ships entering Russian waters have also increased by 50 per cent after Lloyds classified all Russian ports as high risk.