UK shuts out Russian companies from aviation insurance market
(Reuters) -- Britain will ban Russian companies from the multibillion-dollar aviation and space insurance market in London, the world's largest commercial and specialty insurance center, the finance ministry said on Thursday.
Russian companies in the aviation or space industry will be blocked from accessing British-based insurance or reinsurance services directly or indirectly, the ministry said.
“The U.K. government will bring in legislation to prohibit U.K.-based insurance and reinsurance providers from undertaking financial transactions connected with a Russian entity or for use in Russia,” the Treasury department said.
“Further details of the legislation will be available in due course.”
The move will leave Russian commercial airlines scrambling to get cover elsewhere. Industry sources say this could include Chinese reinsurers, while other western insurers are likely to hold back from the business, fearful of other countries imposing similar restrictions.
Companies from around the world use Lloyd’s of London and other businesses operating in London for aviation insurance and reinsurance.
“We are in regular communications with the U.K. 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,” said Patrick Tiernan, Lloyd’s chief of markets.
Aviation is one of the largest sectors at Lloyd’s, along with marine and energy insurance.
Marine, aviation and transport insurance lines at Lloyd’s reported gross written premium of £3 billion ($4.01 billion) in insurance and £1.5 billion in reinsurance in 2020.
The International Underwriting Association, which represents London commercial insurers outside Lloyd's, was awaiting more detail on the legislation, it said in a statement.
