A residential building destroyed in Mariupol, Ukraine. Picture: REUTERS/ALEXANDER ERMOCHENKO
Global commercial insurance premiums rose 11% on average in the first quarter, according to insurance broker Marsh, which said the war was putting upward pressure on rates. But the overall figure masks sharper moves in some sectors, and only covers the first five weeks following the invasion of Ukraine by Russia.
Garrett Hanrahan, global head of aviation at Marsh, said aviation war insurance is no longer available for Ukraine, Russia and Belarus as a result of the conflict. For the rest of the world, aviation war cover has doubled, as insurers try to recoup some of their losses, he said.
One aircraft lessor described recent rate increases on its insurance as “not a pretty sight”. Some aircraft lessors are now having to pay 10 times their original premium, one underwriter said, while another said insurers could “name their price” to lessors.