Russia sanctions will have ‘minor impact’ on London Market

The London market is capable of near immediate implementation of the full swath of possible sanctions against Russia and can endure the regime with little collateral damage to its own business, key industry leaders told a House of Lords committee.

"The impact on the London market should be relatively minor," Malcolm Newman, managing director for EMEA Hub at SCOR, told the Lords' committee.

"Clearly it is going to have an impact on the flow of business into London, but I don't think that is going to be material in the scheme of things for the market overall and certainly not in relation to my own business," Sean McGovern (pictured), CEO at AXA XL, concurred in his testimony.

The industry has likely kept perfect pace with the roll out of sanctions against Russia without any delays, both officials claimed.

"We can implement sanctions very quickly in the insurance market," AXA XL's McGovern said.

"I am confident, certainly speaking for my own firm, that we have a lot of expertise in sanctions compliance and we are able to adapt and address the sanctions issue very quickly."

SCOR's Newman concurs that compliance has been "immediate."

"We have the processes in place, the ability and the desire to comply with sanctions," he told the chamber.

One challenge along the way has been the back and forth of rising sanctions between the US and EU, but "we are seeing those ironed out as the sanctions regimes evolve ... so I don't think that is a particular challenge for us now," AXA XL's McGovern said.

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