The UK Treasury Committee is to meet to discuss the potential impact of further insurance sanctions on the Russian economy.
The Lloyd’s Market Association’s (LMA) head of aviation and marine insurance Neil Roberts will be the key witness at this afternoon’s hearing.
Roberts also heads both the LMA’s Joint War Committee and Joint Hull Committee.
At the meeting, UK Members of Parliament (MP) want to discuss areas where further economic sanctions could be imposed to exert additional pressure on Russia following its invasion of Ukraine.
The Treasury Committee will take a close look at the UK insurance market, how Russia uses it, and the potential impact of insurance sanctions on Russia and the UK.
MPs want to ask industry experts about firms continuing to trade with Russia, their reliance on Western goods and where Russia is vulnerable to supply chain disruption.
Roberts’ participation in the discussion indicates marine insurance is likely to be an area where further sanctions are under consideration.
The Lloyd’s of London market, and wider commercial London insurance market, is a leading provider of marine insurance and reinsurance to the shipping industry.
Russia has its own marine insurance market, but much of its cover is reinsured through the London market.
In March the UK acted to block Russian aviation and space companies from accessing the London insurance market.
Marine insurance next
Many speculated at the time that the marine insurance sector would be next in line to be hit by direct sanctions.
The UK has also sanctioned Russian shipping giant Sovcomflot while Russian ships are blocked from entering UK, EU and US ports.
Some of the world’s leading insurance companies and brokers have already said they will decline further Russian business.
