The chief executive officer of the largest insurance broker in the United Kingdom has warned that the industry will fail if compelled to cover the cost of claims resulting from Russia’s invasion of Ukraine.
“We’d all go bankrupt” if insurers covered war expenditures, according to Howden Group CEO David Howden.
The remarks were made as the owners of approximately 500 commercial aircraft confiscated by Russia. Shortly after the outbreak of war prepared to sue several Lloyd’s of London insurers for refusing to pay out approximately £8 billion in claims.
Howden stated that their decision not to pay was justified.
‘War has never been something that has been covered by insurance,’ he told The Sunday Telegraph.
He added that there was “insufficient capital on the insurance market” to cover the effects of the conflict. And that if policies were expanded, the government would have to bail out insolvent insurers.
