The Lloyd’s international speciality market is exposed to sanctions risk (financial and trade sanctions) and market participants must navigate the myriad of applicable, and at times conflicting, sanctions regulation.
Where insured assets are movable, and multinational programmes provide coverage in multiple countries, market participants must consider how applicable sanctions – UN, UK, EU, US etc. – may impact a single policy.
Additional challenges can materialise through delegation and outsourcing, and even through counter parties such as banks and core service providers that may be subject to a different set of regulations.
It is essential for the market to adopt a risk-based approach to mitigate sanctions risk. Lloyd’s Crystal provides an indication of sanctions that apply to countries that have sanctions and we have provided further content in the secure areas.
Crystal