Authored by Sara Weathers

Russia’s invasion of Ukraine in February has led to sanctions being put into place on Russia. According to a recent article from Insurance Business Magazine, these sanctions have caused a global economic squeeze that could last for months or years.

The sanctions that have been put into place are meant to cut Russia off and create havoc in its economy. However, since Russia is a massive player in the world’s financial system, these sanctions affect other countries too. The process of deglobalization had begun due to the challenges of trading during the COVID-19 pandemic, but as more countries begin to increase domestic production due to these sanctions, the world economy could be affected even more.

In the insurance world, these sanctions and the process of deglobalization can lead to opportunities for domestic market growth. Insurance companies may not be equipped to handle higher domestic needs, between not having enough workers or distribution power. For more information on how the insurance market could be affected, check out Insurance Business Magazine.

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