London-based Lloyd’s insurance and reinsurance broker United Insurance Brokers (UIB) has indicated that there may be some insurance exposure as a result of the unrest in Libya, and the decision by the UN to sanction a “no-fly zone” to protect civilians in the country.
Ali Belamri, regional manager for North Africa for UIB Group, based in Algeria, stated in a recent speech: “What is taking place in Libya is a tragic situation. No security information has emerged apart from what we see in the newspapers and on television.
“It is too early to know what economic losses there might be as our thoughts at this moment are with the Libyan people and we hope for peace.”
The UIB Group offered some further information on the situation in Libya. It noted that there has “traditionally been a high level of reinsurance provided by international markets in proportion to Libya’s insured risks because Libyan market capacity is not especially high.”
In addition UIB said that “some of the reinsurers involved will have claims, but there is so far no information on this because people are obviously not doing surveys or assessments.”
It also explained that there “will be some problems with regard to exclusions under the standard war clause. Even losses caused by earlier protests might be classed as a ‘popular uprising’, therefore triggering the war exclusion, however this will be ascertained.”
UIB also noted that its “North Africa brokers have frequently visited insurance clients in Libya,” and that the “typical business lines are mostly around oil and energy and a lot of business is self insured.”
Source: United Insurance Brokers
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