Russian demand for insurance against terrorism and sabotage has increased due to the growing number of Ukrainian drone attacks, according to the Kommersant newspaper, citing market participants. Kommersant reports that, according to the company Jugoria, the demand for insurance against terrorism and sabotage in January and February of this year increased by about 30% compared to the previous year. The demand is particularly strong in the southern, central and northwestern federal districts. Experts attribute the surge in numbers to the increasingly dire situation. Industrial companies are increasingly being targeted and experts note that even if a company is not a primary target, it can still be affected by an accidental drone crash.
All Russian insurance companies are currently seeing a strong interest in such “anti-terrorism” insurance policies. However, there is no report on the fact that the conclusion of such a policy is not exactly cheap. Meanwhile, lawyers highlight the peculiarities of this type of insurance, including the correct use of the definitions of “terrorism” and “sabotage” in the contracts.
When determining the tariff for the customer, the type of business activity of the company and the type of asset, rather than the distance from the war zone, play a significant role, explained a representative of the insurance company Remind in an interview with Kommersant. For example, attacks on oil refineries are much more frequent than on other companies, such as shopping centers, so the insurance for such assets charges higher premiums, the representative said.
The drone attacks on Russian regions began in 2022. Kiev did not officially confirm its involvement, but in August 2023, the advisor to the Ukrainian President, Mikhail Podoljak, stated that the number of drone attacks on Russia “will increase”, as reported by Gaseta.ru.
Several market participants told Kommersant that customers are now increasingly demanding an increase in the limits for such insurance policies. “‘If at the beginning of last year the requested limits were, on average, estimated at 10% of the maximum possible loss, they are now many times higher’ says Dmitry Gavrilov, head of the Underwriting Center for Property and Casualty Insurance and Reinsurance at Jugoria”, the newspaper writes. Some insurers even note that companies today are willing to conclude insurance policies with limits of up to 100%.