Our panel of experts, including Gunjan Sinha, Karan Chandan and R. Balasundaram, explored the impact of the recent India-Pakistan conflict on insurance, the changing landscape of war and political violence (PV) coverage, and the specific limitations and gaps in marine, aviation and trade credit insurance. They also discussed the non-cancellable nature of PV policies, the availability of event cancellation insurance internationally and the new “Undercover” solution for cargo in transit, including war and terrorism risks on land. Here are some key takeaways to help you navigate the complexities of insuring against political violence and war.
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Insurance policies for war and war-like risks are changing. Some markets, especially Lloyd's of London, are more flexible and interested in providing coverage to Indian clients.
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Political Violence (PV) insurance policies can't be canceled. This gives our clients some peace of mind and protection during difficult times as long as they pay their premiums.
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Event cancellation insurance can be accessed through international markets to protect against losses arising from war, terrorism, and related perils. Willis, a WTW business, has the expertise and global reach to structure and place such coverage seamlessly through our integrated network.
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Marine insurance, too, has its own set of limitations and gaps. For example, war clauses are applicable only when the cargo is on water or in the air, not during its time at ports or airports.
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Aviation war coverage addresses exposures related to war, terrorism, and other hostile acts. Backed by deep domain expertise and global market insights, Willis supports clients in managing these complex risks with specialised forward looking solutions tailored to evolving geopolitical dynamics.
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Trade credit insurance usually does not cover war-related defaults involving certain superpowers, but it does cover other war-related defaults, providing a nuanced approach to risk management.
We are excited to announce that Willis, is creating a novel insurance product, "Undercover," which will provide a comprehensive solution for cargo transit coverage, including war and terrorism risks on land.
