"The war in Ukraine has only minor direct economic effects for German insurers, since they are hardly involved in Ukraine and Russia," says Joerg Asmussen, General Manager of the German Insurance Association.

"Also, the effects of wars on the international capital markets are often strong in the short term, but rarely long-term in nature." According to Asmussen, the consequences of the foreseeable economic and financial sector sanctions remained to be seen. The increased geopolitical uncertainty and higher energy and food prices are likely to weigh on the overall economy and thus indirectly on German insurers. As for direct insurance coverage, most lines of insurance are predominantly national in nature, so that sanctions hardly play a role there either. In contrast, transport and aviation insurance as well as industrial insurance and reinsurance are regularly affected. In these areas, additional sanctions against Russia would certainly be noticeable.

How are German insurers affected? The article published on the GDV website reviews the potential impact on the main business lines in the German insurers portfolio, pointing out the main characteristics in each case.

Read the full article here.

[s|insurance]