Ukraine and insurance

We are all anxiously following the Russian invasion of Ukraine. The situation is constantly changing and affecting many things in our society. New sanctions imposed by the EU are also affecting policyholders and how insurers should deal with laws and regulations. Therefore, on this page we would like to inform you about the situation in Ukraine in relation to insurance. Do you have any questions? Then please contact us! We will be happy to help you.

Sanctions laws and regulations

Sanction lists are regularly updated based on increased sanctions by the United Nations (UN), the United States (US) and the European Union (EU), among others. Companies and especially financial institutions, including insurers, currently need to be extra vigilant about additions to sanctions lists in connection with the war between Ukraine and Russia.

Sanctions laws and insurers

Under Dutch sanctions legislation, it is prohibited to contribute to support any activity or transaction of a person, entity or country on the sanctions lists. There are heavy fines for failure to comply with this legislation. It is important for insurers to verify at the time of underwriting, during the term and before payment, whether the persons involved in the insurance (for example, the policyholder, the beneficiary or the beneficial owner) are on a sanctions list. These rules also apply with respect to other business relationships, such as claims adjusters or the office catering company. If so, no business relationship may be entered into, such as taking out insurance. Also, no payments or disbursements may be made. A "hit" must also be reported to the supervisor.

Dutch insurers are complying with sanctions drawn up by the EU in response to the situation in Ukraine. Sanctions are coercive instruments used in response to violations of international law, among other things. In this case because of the war in Ukraine.

Private

Traveling to Ukraine

If you want to travel to Ukraine, it is important that you always follow the Foreign Ministry 's travel advice. The travel advice of the Ministry of Foreign Affairs is leading for travel insurance companies and can have consequences for the coverage of your travel and cancellation insurance. In case of doubt or questions, you can always contact us.

Travel advice Ukraine tightened

Ukraine is currently under a red travel advisory (very serious security risks) because of the Russian invasion. This means it is dangerous to travel to this country. The government has advised against traveling there under any circumstances and made it clear that they cannot help. Tightened travel advisories have also been issued for countries bordering Ukraine and Russia.

Travel Insurance

Are you currently in Ukraine? If so, please register with the Ministry of Foreign Affairs. This way they will know you are in the country and this will keep you up to date with the latest information. If the travel advisory is red, like Ukraine's, your travel insurance may not cover damages you incur if you choose to travel anyway.

Cancellation insurance

Usually there is no coverage on cancellation insurance because you prefer not to make the trip again. Contact your travel agent, tour operator or transportation company to discuss your options. You always have the right to cancel the trip. But keep in mind that you are obligated to pay the travel price you owe at that time.

Legal expenses insurance

The conflict in Ukraine can also lead to legal problems. Think of problems with booked or canceled trips, suppliers who do not deliver purchased goods or buyers who cannot take delivery of ordered items. Legal aid insurers are there for their clients (both private and business) in these cases and help them out.

Auto and motor insurance

The Netherlands Bureau of Motor Insurers reports that there are consequences now that several Russian banks are/were excluded from SWIFT:

• Damage caused by a Russian-registered vehicle to a Dutch-registered vehicle and/or its occupant, caused in a green card country other than Russia, will be reimbursed.
• Damage caused by a Russian-registered vehicle in Russia can lead to unpleasant situations, as payment of damages may be seen as questionable by Russian authorities. At present, it is unclear whether this can be compensated.
  The consequences of other situations are still unknown. The Association advises against driving to/through Russia or Belarus.

Business

Credit Insurance

The risk that a company faces when it supplies products or services to debtors based in Ukraine and these services are not payable until after delivery (so-called "trade credit") has further increased as a result of the rising tension in the region. In response to developments, it is good to reconsider this risk and possibly take measures, for example by making new deliveries on a prepayment basis or by obtaining additional guarantees. The coverage offered by credit insurers to suppliers may be further adjusted as a result, both in terms of available coverage capacity and in terms of premium and conditions.

Cyber Insurance

Cyber insurance does not specifically focus on threats from a country or region and therefore does not generally have specific exclusion(s). But, "war" may be included as an exclusion in some cases. If you have any doubts or questions about this, please feel free to contact us.

In general:

• Adhere to basic cybersecurity measures. Digital attacks in the Ukraine differ in methodology, this highlights the need to adhere to basic measures.
• The AIVD and MIVD recently released a publication highlighting seven moments when a cyber attack by state actors can be stopped. This can help increase your digital resilience against stateful digital attacks.
• Keep an eye on monitoring and detection. In case of suspicious network traffic, contact the Computer Emergency Response Team (CERT) for your sector or the NCSC (if your company is part of a sector designated as "vital").
• Note specifically the basic measure "segment networks. For now, cyber attacks are being targeted in the Ukraine region. Prevent a targeted cyber attack on an agency in the region from spilling over to systems.

Source: Association of Insurers

Transport Insurance

The transportation sector is also affected by Russia's invasion of Ukraine and the closure of airspace, waterways and borders. Security officers of shipping companies receive signals directly from the coast guard from the ministry about additional measures that apply when the threat level is raised. Ukraine is now closed territory to ocean-going vessels. The war clause (M3) common in cargo transport insurance has come into effect. This usually affects coverage.

Prohibition on insuring claims due to molestation

A regular non-life insurer with its registered office in the Netherlands is prohibited from insuring claims caused by or arising out of armed conflict, civil war, insurrection, internal disturbances, riots or mutiny occurring in the Netherlands. The prohibition applies only to insurers under Dutch supervision. Branches of foreign parties can, however, provide coverage for Dutch clients against forms of acts of war.

Molest are large-scale violent calamities caused by human action.War and other large-scale calamities are often excluded from coverage because of the cumulative risk and the potential to jeopardize insurers' financial stability. Some forms of them are therefore regulated by law.

A statutory exception has been made for mutual insurers. These insurers are not subject to the prohibition described above. This refers specifically to mutual insurance companies with their registered office in the Netherlands and mutual insurance companies with their registered office outside the Netherlands that exclusively take out non-life insurance policies relating to damage that may be caused by, or arise from, armed conflict, civil war, insurrection, internal disturbances, riots and mutiny.

Marine, transport, aviation and travel insurance policies do allow molest risks to be insured in the commonly used molest clauses as long as De Nederlandsche Bank (DNB) has not raised objections.

Source: Association of Insurers

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