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Lloyd’s re/insurance market backs sanctions against Russia: report

28th February 2022 - Author: Luke Gallin

The specialist Lloyd’s insurance and reinsurance marketplace has told The Straits Times that it is backing sanctions against Russia following its ongoing invasion of Ukraine.

Lloyd'sWith Russia’s invasion now on day five, western nations have announced a range of sanctions designed to damage the country’s economy and cut it off from the rest of the world.

Lloyd’s, which is the world’s oldest and largest insurance market, has reportedly said that it will back fresh sanctions against Russia.

Patrick Tiernan, Lloyd’s Chief of Markets, told The Straits Times: “We are proactively engaging with the British government and international regulators as the situation develops and will support any sanctions put in place. We continue to monitor the deeply concerning situation in the Ukraine and our thoughts are first and foremost with those directly impacted.”

Reports in the media claim that Tiernan attended a meeting with Prime Minister Boris Johnson where the latest sanctions were being drafted.

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“We are working closely with the entire Lloyd’s market and relevant associations to ensure the efficient functioning of our market through the crisis for all customers and stakeholders,” said Tiernan.

It’s expected that the new sanctions could again drive huge fluctuations across markets with higher commodity prices and inflation among the concerns. Since the invasion started, there’s already been a huge impact on oil with prices reaching the highest level since 2014. And, as new sanctions come into effect, traders will be assessing what they mean for the global economy.

In the wake of unprecedented international sanctions against Russia’s financial system, it’s been reported this morning that the Russian rouble has fallen more than 40% after trading began on Monday.

The war in Ukraine will clearly have a far reaching impact on industries of all shapes and sizes, and analysts warned recently that the insurance industry is exposed in numerous areas.

With the invasion ongoing and the world waiting to see what Russia’s President, Vladimir Putin, does next, it’s too early to tell what the war means for the re/insurance and other global sectors.

Last week, the Chief Financial Officer (CFO) of global reinsurer Swiss Re, John Dacey, echoed this uncertainty and said that his company and the wider market will have to wait and see how it develops.

Commenting on Swiss Re’s exposure specifically, Dacey said that it is immaterial on the investment side and modest on the liability side.

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