Marsh McLennan expands Lloyd’s-backed facility for Ukraine
Marsh McLennan expands Lloyd’s-backed facility for Ukraine | Insurance Business New Zealand
Marine
Marsh McLennan expands Lloyd’s-backed facility for Ukraine
Broader public-private partnership to provide “major economic benefits”
Marine
By
Terry Gangcuangco
In a significant move to support Ukraine’s export trade amid ongoing conflict, Marsh McLennan’s Lloyd’s insurance facility for the country has been expanded.
Initially rolled out last November to facilitate shipments of grains and critical food supplies worldwide by offering lower-priced war risk insurance, the ‘Unity’ facility now covers all non-military goods, including key Ukrainian exports like iron ore, steel, electrical equipment, and animal fodder.
Available to clients of all Lloyd’s registered brokers, Unity has capacity from the centuries-old marketplace’s underwriters and other providers in London. Led by Ascot, the insurers supply up to US$50 million in hull and P&I (protection and indemnity) war risk insurance through the facility.
Being a public-private partnership with Ukraine’s government, the facility will continue to be supported by state-owned Ukrainian banks Ukreximbank and Ukrgasbank, which created standby letters of credit to provide a first loss compensation fund for shipowners and charterers.
Marsh McLennan president and chief executive John Doyle expressed his company’s commitment to the war-torn country, stating: “Marsh McLennan is dedicated in our support of Ukraine – helping it attract global investment to rebuild the country, and recover from the devastating impact of war on its people and economy.
“We’re pleased to expand this public-private partnership with the Ukrainian government. It will provide exporters with lower premiums to ship a wider range of goods through its Black Sea trade routes and deliver major economic benefits to Ukraine.”
Ukraine’s First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko highlighted the importance of the expansion for the nation, particularly for its hard-hit metallurgical sector. Svyrydenko emphasized the government’s focus on boosting exports of non-raw materials like iron ore and steel as part of economic resilience efforts.
Lloyd’s CEO John Neal, meanwhile, commented: “Since the invasion of Ukraine, Lloyd’s has partnered with the United Nations, governments, regulators, and insurers to keep economies and supply chains moving in spite of difficult circumstances.
“New partnerships between the public and private sector, including the expansion of the Marsh Unity facility, are the hallmark of the Lloyd’s market, bringing insurance experts and policymakers together to solve complex risks.”
What do you think about this story? Share your thoughts in the comments below.
Related Stories
Keep up with the latest news and events
Join our mailing list, it’s free!
