A Macro view of the crisis in Ukraine 

The war in Ukraine is first and foremost a human tragedy, brought about by an act of aggression on a sovereign country. Our thoughts are with all those affected. 

The return of conventional warfare to Europe is a huge shock that brings considerable global consequences, from geopolitical realignments to financial shocks. The risk of escalation is ever present and a period of macroeconomic instability is assured.

Whilst the economics are of course secondary to the devastating human toll we wanted to take the opportunity to share a special report that our Howden colleagues have created which examines the macro reverberations and how they are likely to impact the (re)insurance market, which you may find of interest. 

The Ukraine crisis presents a myriad of risks to the sector – direct underwriting losses, rapidly rising prices, slower economic growth, financial market volatility and the potential for asset shocks – that are not altogether different to what occurred during COVID-19 and the financial crisis. But with direct investment and underwriting exposures limited overall, and with second order effects in financial markets currently manageable, the sector is strongly positioned to support clients through this period of uncertainty.

View the report