Insurers Steering Clear of Risky Russia: Reuters

Sanctions and rough oil market make market too dangerous, sources say

Foreign insurance firms are growing wary of doing business in Russia, according to a Reuters report, turned off by economic sanctions and a drop in oil prices.

Read: Risk Profile: Going to Japan

“If (insurance companies) were to write credit risk for Russia – even if the companies are not sanctioned – and they were to default, they would have a difficult conversation as to why they chose to write the risk,” Andrew van den Born of Willis told the news agency.

Reuters wrote that Russian insurers would have an especially hard time getting foreign reinsurers to underwrite energy or shipping projects.

Read: Some Insurers Stop Underwriting Political Risk in Ukraine, Russia

Even those who stay in the market will have to jack up their prices, sources said.

Read: Russian Insurers on the Decline

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