Cancellation clauses could limit aviation insured losses from Ukraine crisis, according to analysts at Jefferies.
The analysts believe that when Russia introduced a law that allowed Russian airlines to register planes locally, this is the first point in time that the country demonstrated an intent to confiscate the aircraft, so we also view this date as the most likely trigger event.
War-risk policies tend to include a seven-day notice of exclusion/cancellation as standard, and we expect most insurers started issuing this notice as soon as Russia invaded Ukraine, and up until end of February.
