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Final re/insurance claims “highly uncertain” from new Russia aircraft law

March 24, 2022

A new report from Moody’s has stated that at this stage it is unclear whether insurers will have to pay all current claims for lessors, in regards to the new Russian aircraft law effectively preventing foreign lessors from repossessing their aircrafts.

Under usual circumstances, lessors are insured for this risk, but they are now turning to insurers to recover these losses.

But insurers may not have to pay all these claims, because of the amount and timing of impairment charges to be taken by lessors are subject to a number of a variables, as well as negotiations with airlines, which will ultimately affect assumptions regarding future value.

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