Marsh McLennan has collaborated with the Ukrainian government, to provide affordable insurance supporting the export of grain and other critical food supplies globally from Ukraine’s Black Sea ports.
The solution, known as Unity, has also been introduced in partnership with the Export Credit Agency of Ukraine, Ukreximbank, Ukrgasbank, and DZ Bank, and is supported by insurers linked to Lloyd’s of London, who will offer hull and separate protection & indemnity (P&I) war risk insurance of up to $50m.
Ukreximbank and state-owned Ukrainian bank Ukrgasbank will issue standby letters of credit, each confirmed by DZ Bank, to bolster the facility.
Additionally, the Ukraine Ministry of the Economy stands behind this initiative, ensuring shipowners and charterers receive war risk insurance amid the absence of safe corridors. Norton Rose Fulbright, a global law firm, provided consulting services
Today’s launch follows Marsh McLennan’s earlier commitment in June, wherein they pledged pro-bono services to the Ukrainian government, including insurance expertise, building a data platform for war risk assessment, strategic advisory services from Oliver Wyman, and catastrophe reinsurance modelling from Guy Carpenter.
John Doyle, President and Chief Executive Officer, Marsh McLennan, commented, “Marsh McLennan is committed to mobilising our unique expertise to support global food security and stability. The launch of this insurance facility will especially benefit the developing nations that buy much of Ukraine’s grain and also help Ukraine’s future recovery and reconstruction endeavors. Through these efforts, we are fulfilling our purpose as a company to give our communities and clients the confidence to thrive.”
Denys Shmyhal, Prime Minister of Ukraine, said, “The launch of the Unity facility will enable Ukraine to provide vital food supplies to the world at the same time as supporting the Ukrainian economy and keeping the Black Sea open for international trade. This partnership between the Ukrainian government, Marsh McLennan and Lloyd’s of London is a sign of confidence in our economy and demonstrates that Ukraine is open for business.”
Marcus Baker, Global Head of Marine, Cargo & Logistics, Marsh, said: “The creation of this public-private partnership, with insurers working in tandem with the Ukrainian government and its banks, will accelerate the urgent resumption of vital grain exports amid the ongoing effects of this brutal conflict. Unity’s unique structure will enable underwriters to price risks at more affordable levels than those experienced in recent months.”
John Neal, CEO, Lloyd’s, added: “Lloyd’s welcomes the establishment of this insurance facility, which brings together the expertise of our market to provide an innovative solution that will ensure the safe transport of Ukrainian grain and agricultural products out of the Black Sea and help alleviate global food insecurity.”
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