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Airlines need to negotiate Ukraine insurance cover for flights – Lloyd’s official -Breaking

by Mike Robinson

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© Reuters. A protestor holding the Ukrainian flag participates in the call for new sanctions on Russia during Olaf Scholz’s visit to Kyiv (Ukraine), February 14, 2022. REUTERS/Antonio Bronic

LONDON (Reuters) – Airlines will need to negotiate Ukraine aviation cover with their insurers, with some of the required war risk policies now being agreed on a daily basis, a senior Lloyd’s market official said on Monday.

Two Ukrainian airlines reported problems with securing some flights’ insurance on Monday. Foreign carriers started to avoid Ukraine’s airspace, as Russia increases its military presence at the border.

“Most market leaders (insurers) gave 48 hours’ notice to exclude Ukraine as of Friday evening, which does not mean they have terminated or withdrawn cover. It means that there is an invitation to negotiate coverage,” Neil Roberts, head of marine and aviation with the Lloyd’s Market Association (LMA), told Reuters.

Some cases of war risk insurance coverage are being agreed on an hourly basis. This is prudent. Many planes can get stuck in the ground, and it is important for insurers to understand their risk. We will learn more as we know the facts.

The LMA represents the interests of all underwriting businesses in the Lloyd’s market.

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