LONDON (Reuters – Some aviation and maritime businesses, particularly those that are exposed to the conflict in Ukraine, have seen their insurance premiums double or even more, industry sources claim. It is increasing shipping costs and putting pressure on airlines and shipping companies.

According to Marsh insurance brokerage, global commercial insurance premiums increased 11% in the first quarter. Marsh said that the war is putting upward pressure upon rates.

The overall number does not include the impact of some sector moves and it only includes the five week period following the invasion.

Most mainstream insurance policies exclude war. Extra war insurance can be added to the customer’s policy.

Marsh global head for aviation Garrett Hanrahan said that as a result, aviation war insurance is no longer available for Russia, Ukraine and Belarus.

He said that aviation war coverage has increased by two-thirds for the rest of the globe as insurance companies try to recover some losses.

“The rate increases are helping the hull market to rebalance itself.”

The conflict, which Russia calls a “special military operation”, could lead to insurance losses of $16 billion-$35 billion in so-called “specialty” insurance classes such as aviation, marine, trade credit, political risk and cyber, S&P Global (NYSE:) said in a report.

Aviation insurance claims alone could total $15 billion, S&P Global said, with hundreds of leased planes stranded in Russia as a result of western sanctions and Russian countermeasures.

An aircraft lessor said that recent rate hikes on their insurance were “not pretty”.

A few aircraft lessors were left in a very vulnerable market sector because they are trapped in Russia. They now need to pay 10x the original premium. However, another underwriter claimed that insurance companies could name their price to lessors.

In ship insurance, policyholders pay an additional “breach” premium when a ship enters particularly dangerous waters, locations which are updated by the Lloyd’s market.

Three insurance sources stated that the cost of insurance for the region around Russian and Ukrainian waters in Black Sea and Sea of Avov has increased to almost 5% of ship value, compared to 0.025% prior to the invasion. This amounts to millions of dollars per seven-day policy.

The extra premium must be paid each time the ship travels into these waters.

Rates for ships going into other Russian waters have also risen by at least 50% after the Lloyd’s market classified all Russian ports as high risk, two of the sources said.

Due to these dangers, many marine insurers have stopped covering the area.