LONDON — Britain will ban Russian companies from the multi-billion dollar aviation and space insurance market in London, the world’s largest commercial and speciality insurance center, the finance ministry said on Thursday.
Russian companies in the aviation or space industry will be blocked from accessing British-based insurance or reinsurance services directly or indirectly, the ministry said.
“The UK government will bring in legislation to prohibit UK-based insurance and reinsurance providers from undertaking financial transactions connected with a Russian entity or for use in Russia,” the Treasury department said.
“Further details of the legislation will be available in due course.”
The move will leave Russian commercial airlines scrabbling to get cover elsewhere. Industry sources say this could include from Chinese reinsurers, while other western insurers are likely to hold back from the business, fearful of other countries imposing similar restrictions.
Companies from around the world use Lloyd’s of London and other businesses operating in London for aviation insurance and reinsurance.
“We are in regular communications with the UK government and international regulators, and are working closely with the Lloyd’s market to uphold the implementation, at pace, of sanctions applied by governments around the world,” said Patrick Tiernan, Lloyd’s Chief of Markets.
Aviation is one of the largest sectors at Lloyd’s, along with marine and energy insurance.
Marine, aviation and transport at Lloyd’s reported gross written premium of three billion pounds ($4.01 billion) in insurance and 1.5 billion pounds in reinsurance in 2020.
The International Underwriting Association, which represents London commercial insurers outside Lloyd’s, was awaiting more detail on the legislation, it said in a statement.
Photo: Pedestrians pass the Lloyds of London Ltd. building in London.
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