By John Q. Hosedrinker 
Russian insurance companies are experiencing a surge in inquiries for separate property insurance against drone attacks, driven by increased media coverage of Ukrainian strikes and the classification of such attacks as terrorism, which is often excluded from standard coverage. Initially, only VSK offered specific drone strike policies, but the expanding range and frequency of attacks have prompted its competitors to follow suit. This has led to a significant increase in customer requests, potentially reaching hundreds of thousands in some regions, and a projected seven-fold increase in the drone insurance market, with experts estimating it could be worth billions of rubles. Financial experts also advise potential customers to carefully review policy details to understand the specific risks covered.
Read the original article here
Russian demand for drone strike insurance ‘goes through roof’ – it’s a headline that really makes you stop and think, doesn’t it? It’s a grim situation, yet the phrase itself has a certain dark humor to it. The very idea of needing insurance against your own country’s military actions, against attacks that are, let’s be honest, a direct consequence of the choices being made at the top… well, it’s a pretty stark illustration of the current reality in Russia.
Now, a lot of insurance policies out there have clauses specifically excluding damage caused by war. But, given that in Russia they’re legally obligated to call this whole thing a “special military operation,” things get a bit messy for the insurance companies, don’t they? It’s like they’re caught in a legal and semantic trap. You can imagine the lawyers, the actuaries, all scrambling to figure out how to navigate this situation. What’s even more fascinating, and perhaps morbidly amusing, is the potential demand for other niche insurance policies. Like, say, insurance against leaders falling out of windows. You almost have to laugh to keep from crying.
The reality, though, is that the demand for drone strike insurance, if it exists, is a symptom of a much larger problem. The solution, of course, is simple: end the conflict. Until that happens, the demand will persist, and those in Russia will keep trying to find ways to protect themselves, their property, and perhaps their livelihoods. This is where the insurance companies come in, as they must now calculate the risk and adjust their pricing accordingly. We know that those companies are not stupid. They’re going to factor in the likelihood of a drone strike or other attack and set their prices to ensure they remain profitable.
It’s worth noting that some people are already cynical about this. The idea of an opportunistic oligarch taking advantage of regular citizens by offering insurance and then never paying out on claims is a grim possibility. But here’s the thing, this situation highlights a fundamental truth: when a country is at war, all the normal rules get thrown out the window. And if civilian assets are damaged, and the insurance market is threatened, it could put enormous pressure on the government to intervene and prop it up.
It is important to remember the reality of the situation. There are reports about the intentional targeting of civilians, which is a stark contrast to the narratives being promoted in Russia. In this case, the situation is a mess. One issue is the definition of the damage. The Russian state is likely going to declare every Ukrainian drone shot down and so damage caused by them is “debris”, or perhaps the result of careless smoking.
The thing is that it seems unlikely that any insurance company, domestic or international, would offer this type of coverage in the border regions. It is a matter of risk. Is the insurance carrier willing to insure a property located in a territory adjacent to an active war zone? Insurance companies are going to want to protect themselves. This means that policies are going to exclude war, and even terrorism.
This whole thing reminds us that in Russia, anything hitting an intended military or industrial target is just debris from being shot down. Anything hitting civilian structures is the fault of Ukrainian devilnazis. Either way, the Russian people will be paying for all of this. And really, the only way to stop it is for the war to end.