The market is looking for protection from terror – Kommersant

At the end of 2023, corporate clients began to apply for insurance against the risks of terrorist acts and sabotage much more often. Most of the requests resulted in the conclusion of a contract, despite the specifics of risk coverage and high cost. In 2024, the demand for such insurance will continue to grow at a high rate, experts believe, but there is a risk that insurers will refuse to accept “certain territories” for work.

The interest of corporate clients in insurance against terrorist attacks and sabotage has grown significantly at the end of 2023, three large brokers told Kommersant. According to AST estimates, over the past year the number of requests from clients regarding these risks has increased by 40%. “All of our large industrial clients with large production sites showed interest in purchasing coverage against the risks of sabotage, terrorism and so-called military risks in 2023,” says Andrey Shein, deputy director of the insurance broker Remind. Often, requests came from companies with assets in border areas, adds Inna Biryukova, broker of the FINPRO Nobilis department. There was also a surge in demand from companies whose offices are located in Moscow City, adds Mr. Shein.

Insurers confirm the trend. Rosgosstrakh says that customer interest has increased by more than 50%. Renaissance Insurance notes an increase of 30–40%, and Absolut Insurance an increase of 25–30% in its portfolio. Sovcombank Insurance is talking about an average growth of 7–10% for the market and 6% for the company.

According to Denis Titov, Deputy General Director of AST Insurance Consultant for Property and Liability Insurance, 80% of clients who have expressed interest in such insurance coverage ultimately conclude an agreement.

The growth in interest “is obvious in light of the current situation – I want to have insurance coverage for all cases,” says B1 partner Tatyana Samsonova. Since February 24, 2022, regional authorities have reported attacks or sightings of drones about 511 times (see Kommersant, October 31, 2023).

However, coverage for such risks has its own peculiarities, experts warn. “Most often, a client’s risk of terrorism means insurance against the arrival of something flying, for example, drones, drones, missiles. However, this is standardly excluded in all insurance contracts, as it is considered military risks,” explains Mr. Titov. In order for the coverage to work, the insurance contract must clearly state that the events provided for in Art. 205 “Terrorist act” and Art. 281 “Sabotage” of the Criminal Code of the Russian Federation, Ms. Biryukova clarifies.

According to Mr. Shein’s estimates, risk coverage can now be provided at an average level of 10–15 billion rubles. Deductibles amount to tens to hundreds of thousands of rubles, depending on the wishes of the policyholder, he clarifies. Typically, the risk of terrorist attacks and sabotage is included in a property insurance policy.

Director of the Industrial Risk Insurance Department at Rosgosstrakh, Kirill Popov, adds that the conditions strongly depend on the reinsurance policy in the Russian Anti-Terrorism Insurance Pool (RATSP) and other reinsurance capacities, including RNPK. Last year, RATSP announced that the pool capacity would increase to 25 billion rubles. in 2024.

In 2024, companies’ interest in insurance against terrorism and sabotage will continue to grow. ACT expects an increase of 30%: “The potential increase in terrorist threats will lead to increased demand for coverage. A deterrent may be the refusal of insurers to accept these risks in certain regions of the country.”

Yulia Poslavskaya