Sudan Conflict May Push Up Premiums

Khartoum Airport

Worsening situation in Sudan may push up premiums even further.


The worsening military situation in Sudan is likely to have a knock-on effect on aircraft insurance premiums and market rates, adding an extra cost for airlines and hitting the all-war market that is still dealing with the fallout from Russia-Ukraine conflict.

That was the verdict of Nigel Weyman, global aerospace executive at Gallaghers who was speaking to Aviation Insurance News.

The conflict in Sudan - which as Russell previously reported is between the Sudan Military Force and the Rapid Special Forces (RSF) - has seen extensive fighting across Sudan, with most of the fighting concentrated in the capital, Khartoum.

Numerous locations across Sudan including Khartoum Airport and Meroe Airport have suffered extensive damages.

The New York Times reported on 18th April, that at least 20 aircraft were either destroyed or badly damaged.

While it is too early to know which planes are damaged and the losses, we do know some of the planes that been damaged or destroyed during the fighting.

The Insurer has previously reported the Saudi Airbus A330-330 ($100 million value), Ukrainian airline SkyUp Boeing 737-800 ($20 million), and Embraer 175 aircraft owned by Kenyan Airline ALS Kenya ($3 million), have all been destroyed during the first days of the conflict.

A US brokered cease fire is currently in place in Sudan for 72 hours but there have been numerous reports in multiple media outlets of gunfire and clashes still taking place, so it is uncertain how long the ceasefire will continue.

During this ceasefire, many countries including Britain, Germany, France and Turkey have evacuated citizens from Sudan.

There have been humanitarian concerns for the conflict, with 1/3 of Sudan’s 46 million population reliant on humanitarian assistance, which has been stopped because of the conflict.

One thing that is clear is that with Russia-Ukraine fallout continuing to rumble on, the specter of a China-Taiwan conflict and now the Sudan situation, the overall outlook for the war risks market is very difficult indeed.


 

Post Date: 26/04/2023

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