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AIG weighs cutbacks in Russian and Ukrainian business

Global insurer is considering the addition of exclusion clauses on commercial policies in the two countries for a wide range of lines

Global insurance giant AIG is considering moves to cut back its coverage for commercial clients in Russia and Ukraine amid Russia’s ongoing incursion into its Eastern European neighbour, according to reports. 

AIG is considering the addition of exclusion clauses on commercial policies in the two countries for a wide range of lines, Reuters reported, citing sources familiar with the matter.

It remains unclear whether such exclusions would apply to all commercial policies or just certain lines.

AIG is not the only company weighing the introduction of Russian and Ukrainian exclusions into primary insurance policies.

“What we are now seeing are the underwriters starting to introduce Russian, Ukraine wording into their policies,” Meredith Schnur, managing director and US and Canada cyber leader at Marsh, told Reuters. She did not identify other carriers doing so.

However, over the last month, re/insurers announcing their departure from the Russian market or the suspension of operations there include Munich Re, Allianz, Zurich, Swiss Re and Generali.

In addition, complete departures or suspension of business in Russia have been announced by brokers Marsh McLennan, Aon and WTW.

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