A Russian insurance company reports significant losses due to increased compensation claims tied to Ukrainian drone attacks, leading to unsustainable financial pressures on insurers in the country.
The Russian newspaper Kommersant has highlighted a troubling trend in the insurance sector, particularly related to terrorism and sabotage coverage, which has become unprofitable for insurers in Russia. This shift is primarily attributed to a dramatic increase in compensation claims arising from the escalation of Ukrainian drone strikes. According to the reports, the losses from these attacks are estimated to reach as high as 11 billion euros, reflecting the scale and impact of the ongoing conflict.
In the previous year, Ukraine reportedly conducted 120 strikes on Russian energy facilities, with a particular focus on oil refineries, which accounted for 81 of those attacks. Additionally, dozens of other strikes targeted various infrastructure, including oil drilling platforms, gas fields, pipelines, and tankers. The significant frequency and intensity of these attacks are leading to perilous implications for the insurance market in Russia, complicating the ability of companies to sustain their business models amidst mounting losses.
Insurance executive Yevgeny Borovikov, from Mains Company, commented on the issue, emphasizing that the increase in claims correlates directly with the rise in incidents resulting from these conflicts. This situation not only poses risks to the insurance industry but raises concerns about the broader economic ramifications as compensation claims continue to proliferate, potentially impacting various sectors in Russia that rely on stable insurance coverage to manage their operational risks.
