Lloyd’s of London’s war underwriters have begun setting aside cash reserves as they prepare to pay out on a flurry of claims from the owners of ships stuck in Ukraine’s territorial waters.
The insurance market is readying itself for a new wave of claims from shipowners that have now become viable following the anniversary of Russia’s invasion of Ukraine in February 2022.
Lloyd’s has already set aside £1.4bn to pay for claims arising from the war in Ukraine, including those claims related to the more than 400 internationally owned aircraft that were seized by Russia in March 2022.
In this City A.M. article, Rob Smart, chief technical officer at Mactavish, explained that Lloyd’s is preparing for a “sudden spike in claims,” as he noted the one-year anniversary of the war marks the point at which many shipowners will be able to declare their ships “unrecoverable”.
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