Around three quarters of UK companies surveyed by insurance governance firm Mactavish have been hit by sanctions imposed on Russia since its invasion of Ukraine and made changes to their supply chain as a result, with many concerned about how the insurance industry will respond to losses arising from the crisis.
Bruce Hepburn, CEO and founder of Mactavish, said the war in Ukraine and other recent crises have highlighted short-comings in the insurance industry that are set to prolong the hard market.
“It is at times of crisis, such as the war in Ukraine or the Covid pandemic, that the insurance industry needs to show its worth. However, these crises have exposed the severe limitations in the industry, characterised by more cover restriction, less capacity, higher prices and more disputes. The upshot of this is the industry is creating long-lasting hard conditions for policyholders,” he said.