Sanctions delays leave $88.9mn in non-payment insurance claims in limbo

Sanctions licensing delays left $88.9mn of non-payment insurance claims unpaid on time last year, adding a new layer of uncertainty to trade credit and political risk insurance.

Four claims were delayed in 2025 because insurers sought clarity from authorities over sanctions exposure, including formal licences or exemptions. Those claims represented only 3% of the number of claims, but around 20% of total claim value. In total, 136 claims worth $438.5mn were payable during the year.

The issue reflects a growing compliance problem for insurers and financial institutions. Since June 2024, insurers have had to apply for licences before paying certain claims where sanctions concerns arise. Claims with potential Russian links are understood to be taking longer to process, partly because authorities can take months to issue approvals.

Non-payment insurance is an important part of trade finance risk management. When claims are delayed, the impact can ripple through banks, insured lenders and corporates relying on cover to manage exposure.

The figures show that sanctions risk is no longer only about whether a transaction can proceed. It can also affect whether protection responds when a payment default occurs.