New Insurance Niche: Military Risk Coverage in Peacetime
Some insurance companies in Latvia have started offering coverage for military risks in peacetime, responding to the growing damage caused by military drones.
According to Jānis Abāšins, President of the Latvian Insurers Association, the insurance industry has been seeking ways to compensate for losses caused by military drones. As a result, a few companies have begun providing a new type of insurance: military risk coverage in peacetime.
Currently, this segment is a niche market, but it could become increasingly relevant given technological advancements and the rising use of unmanned aerial vehicles. Abāšins noted that this development is natural, as the industry had to respond to new threats and offer protection against unforeseen events.
The new insurance product covers not only direct damage from military activities but also indirect losses, such as business interruptions. However, the exact scope and terms may vary depending on the insurer.
This shift comes at a time when the security situation in the region has changed, and businesses are more aware of the need to protect themselves against military operations, even outside active combat zones.
