Rising insurance costs hit Russia after drone attack wave
After a wave of drone attacks on facilities in Russia, insurers have raised policy prices significantly and lowered payout amounts, writes the daily "Kommersant." Prices were increased due to the rise in incidents involving Ukrainian drones, it was added.
The co-owner of insurance broker Mainsgroup estimated that the cost of terrorism and sabotage insurance policies has increased 120-fold for manufacturing enterprises and 70-fold for refineries. Entrepreneurs are now paying seven times more for warehouse facility insurance than previously.
Drones over Russia. Insurance prices sharply up
From February 2022 to August 2023, regional authorities in Russia reported over 500 Ukrainian drone attacks. Just this past Sunday, the defense ministry reported the shooting down of 158 drones.
At the same time, insurers have lowered payout amounts. Before the war, a company opting for maximum insurance protection could expect a payout of 80% of the incurred losses, but now the highest payout would reach 50-70%. - Independent expert Andrey Barkhoda was assessed, as quoted by the Moscow Times.
He added that despite rising prices and decreasing payouts, the demand for drone attack insurance has increased, with every second business client of insurance agencies currently interested in it.
