AIG may cut insurance for Russia, Ukraine

AIG, one of the world's biggest commercial insurers, is considering cutting cover for Russia and Ukraine, to shield itself from the risk of hefty claims as sanctions ratchet up and the war drags on, an insurance broker and a source familiar with the matter said.

AIG is looking at adding exclusion clauses to policies for businesses operating in the region across a range of policies, according to the two sources who declined to be identified.

Other major insurers are also looking to exclude Russia, Ukraine and even Belarus from a range of policies, the sources said, citing some insurers and policyholders. Reuters could not determine if the potential reduction in cover would apply across all AIG policies in the countries. The insurer declined to comment.

"What we are now seeing are the underwriters starting to introduce Russia, Ukraine wording into their policies," said Meredith Schnur, managing director, US and Canada cyber brokerage leader at insurance broker Marsh, declining to name the insurers.

Brokers such as Marsh act as intermediaries between corporate customers and insurers, and sometimes get involved in drawing up policies.