Nobody, including insurers, is happy about the demand for such insurance.
Injuries from warfare, damaged homes and health, wrecked cars, and ruined businesses. It hurts everyone. But we’re glad that insurance can be a positive and beneficial force amid this horror.
The insurance market has not only adapted to working during war but has also adapted its products. Insurance association members feel the need for such insurance from their clients. We, as an association, are researching this through the activities of our participants and media inquiries on this matter.
Over the past few weeks, Denis Yastreb, the head of NAIU, has given several interviews on war risk insurance.
Can property and life be insured? How to report to an insurer? Will there be full compensation?
Denis answered questions and provided examples. We believe this is important, so we are ready to answer these questions in the future as well.
Let’s answer a few of them here.
Is there war risk insurance available for citizens and businesses in Ukraine now? Yes, there is. Insurers have been providing such services for over a year, adapting existing programs and developing special ones. This process of meeting the need for insurance continues and improves.
Which insurers offer war risk insurance? The number of such insurers is growing, and their number is measured by the volume of almost the entire “active” insurance market, which is estimated at up to 50 companies. The majority of insurers offer such insurance in one form or another.
Is it necessary to conclude a separate war risk insurance contract? This depends on the product developed or adapted by the insurer. Some have developed separate contracts – and then yes, such a “war” contract must be signed. Some have expanded the boundaries of existing conditions or excluded standard “war” grounds for refusal, and then you can conclude an additional contract to the existing insurance contract. And there are insurers who have included war risk insurance in standard, basic risk packages.
What can be insured “from war”? You can insure cars and real estate, health and life, production and business. Insurers are ready to provide depending on their own policies and capabilities.
Is there anything that cannot be insured? This also depends on the terms of each insurer. Usually, insurance coverage is limited by proximity to the zone of active hostilities, certain war instruments, insured person’s activities.
Do life insurers have war insurance programs? Yes, life insurers were among the first to offer such protection to their clients and complied with existing conditions.
What should be done in case of an insurance event? First of all, make sure that you are safe, and if it is safe, provide assistance to those around you. After that, take photos, video, or otherwise document the event and call your insurer. They will provide clear instructions on what to do.
Will there be full compensation for damaged or destroyed property due to war? The insurance terms and insured sums (i.e., the maximum amount that the insured can receive) are determined by each insurer separately. Currently, most insurance companies offer property insurance against war damage within certain limits, not at the full value of the property. However, the possibility of insurance with full coverage of losses is also possible but will significantly affect the cost of such insurance.
We believe that war risk insurance will remain in the past to be studied in insurance textbooks. However, as long as the war continues, insurers provide financial protection from it to our citizens and businesses.
