The sector in the bloc is also already going much further than sanctions set by the European Union, as several companies with activities in Russia "are completely pulling out of that market," Insurance Europe has told representatives of the industry in Ukraine.
The trade body said, in a letter dated Monday, that it was responding to a request for support from the Ukrainian insurance industry. It said its board has agreed to terminate the All-Russian Insurance Association's membership of the trade body.
"Companies throughout the European market are adhering to sanctions, and many are already going much further: for example, several insurers with activities in Russia are completely pulling out of that market," it added.
Insurance Europe lists 36 member associations, which represent 3,900 insurance and reinsurance companies. This makes the group Europe's largest institutional investor.
The European Union banned insurers in the bloc on Feb. 25 from providing insurance directly or indirectly for aviation and aerospace parts or equipment. The EU measures were introduced at the same time as an extensive ban on the export to Russia of aerospace and energy market equipment and other "dual-use" products, which could be used for military and civilian purposes.
The U.K. followed, announcing a ban on Russian aviation and aerospace industries taking out insurance in Britain, in a new round of sanctions after Russia invaded Ukraine at the end of last month.
The moves came as sanctions are ratcheted up after an initial set of restrictions on Russian banks and financial assets by Western governments and global financial institutions.
The invasion of Ukraine, and sanctions on Russia, have also drawn the attention of regulators wary of the effect of these developments on the financial services sector.
Britain's pensions watchdog has warned of the impact of the invasion, and called on retirement funds to comply with U.K. sanctions on Russia. The Pensions Regulator said on Monday that retirement savings plan trustees should also review other risks to schemes linked to the conflict.
--Additional reporting by Martin Croucher and Najiyya Budaly. Editing by Joe Millis.
For a reprint of this article, please contact reprints@law360.com.
