The head of the UK’s largest insurance broker has warned the industry would go bankrupt if it had to cover the costs of claims stemming from Russia’s invasion of Ukraine.
David Howden, head of the Howden Group, said the sector was “not designed” to be “support” for the costs of the war, and if insurers pay out insurance claims, “we’ll all go bankrupt.”
Warning: “War was never covered by insurance”
The comments came as the owners of some 500 commercial jets that were seized by Russia shortly after the outbreak of war were preparing to sue several insurance companies, Lloyd’s of London, after they refused to pay some £8bn in claims.
Howden said their decision not to pay was legal.
“Ultimately, war was never something that could be covered by insurance,” he told The Sunday Telegraph.
He added that there is “not enough capital” in the insurance market to cover the effects of the conflict and if policies are expanded, the government will have to bail out bankrupt insurers.
Credit: www.thisismoney.co.uk /