Dan Glaser, President and CEO, Marsh McLennan, said, “We condemn the unprovoked attack by the Russian government against the people of Ukraine. Having watched with horror the tragic human toll in Ukraine, we feel compelled to take this action. We intend to transfer ownership of our Russian businesses to local management who will operate independently in the Russian market”
Another global insurance broker Aon said it would put its staff in Russia on paid leave
AM Best puts Russia on a higher risk category
New York:
Marsh McLennan, the world’s leading professional services firm in the areas of risk, strategy, and people, announced it will exit all of its businesses in Russia.
Dan Glaser, President and CEO, said, “We condemn the unprovoked attack by the Russian government against the people of Ukraine. Having watched with horror the tragic human toll in Ukraine, we feel compelled to take this action. We intend to transfer ownership of our Russian businesses to local management who will operate independently in the Russian market. This is not a decision that we have taken lightly, and we join all those calling for a swift and peaceful resolution to this deadly conflict.”
Another global insurance broker Aon said it would put its staff in Russia on paid leave.
“We will continue to monitor the situation to determine if we will take further actions,” said Greg Case, CEO of Aon, in a statement.
AM Best puts Russia on a higher risk category
Meanwhile, global insurance rating firm AM Best said it has moved its country risk tier for Russia to a CRT-5 from a CRT-4 to reflect the “significantly heightened geopolitical, economic and financial system risk” in the country.
Sanctions against Russia have targeted the financial system, resulting in a deeply challenging and unpredictable operating environment for insurers, said AM Best.
Volatility in capital and currency markets has increased liquidity risks. Additionally, capital controls and the impact from sanctions will negatively affect cross-border payments.
AM Best said it determines country risk levels by assessing country specific factors that could adversely affect an insurer’s ability to meet its financial obligations. Country risk is evaluated and factored into all AM Best ratings.
Countries are place into one of five tiers, ranging from CRT-1 (Country Risk Tier 1) – denoting a stable environment with the least amount of risk – to CRT-5 (Country Risk Tier 5) – for countries that pose the most risk, and therefore, the greatest challenge to an insurer’s financial stability, strength and performance.
The Country Risk Tier of CRT-5 for Russia reflects “very high levels of economic, political and financial system risk,” AM Best said.