New insurance niche: covering war risks in peacetime
Insurers in Latvia are launching a new service – war risk insurance during peacetime – responding to growing threats from military drones.
Janis Abasins, President of the Latvian Insurers Association, told LSM.lv that the new type of insurance was expected because the industry was seeking ways to compensate for damage caused by military drones.
Compensa Vienna Insurance Group began offering this insurance for businesses in the Baltic states on June 10, followed by Balta on June 16. Meanwhile, BTA Baltic Insurance Company plans to expand its property insurance coverage starting in July, including potential losses stemming from geopolitical circumstances, said Oskars Zvejnieks, director of the risk underwriting department.
The new product addresses the increasing use of military drones and the resulting damage to civilian infrastructure. While such risks are traditionally covered by war insurance, which is usually only valid during wartime, the new policy is designed for peacetime conditions, where such incidents are becoming more frequent.
Compensa and Balta have already started selling the new product, while BTA plans to do so in July with broader coverage. These developments reflect the insurance market's adaptation to emerging security challenges.
