Public-private partnership with Ukrainian government, Marsh McLennan, and Lloyd’s to support Ukraine export trade by providing lower war risk premiums
London | 1 March, 2024
Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people, together with the Ukrainian government and Lloyd’s, today announced a major expansion of its Unity insurance facility. Unity now provides affordable war risk insurance for ships carrying all non-military cargo – such as iron ore, steel, and containerised shipping – and underpins Ukraine’s wider maritime export ecosystem.
Launched in November 2023 to provide affordable war risk insurance for grain shipments and other critical food supplies globally, Unity offers hull and separate protection & indemnity (P&I) war risk insurance at significantly reduced premiums compared to standard market pricing. In addition to grain, Unity now provides cover for Ukraine’s other leading export industries including iron ore, steel, electrical equipment, and animal fodder.
Standby letters of credit created by the state-owned Ukrainian banks Ukreximbank and Ukrgasbank, each confirmed by DZ Bank, will continue to provide a first loss compensation fund to shipowners and charterers which is supported by the Government of Ukraine.
Underwritten by insurers based at Lloyd’s and other London-based insurers, and led by Ascot, Unity provides up to US$50 million in hull and P&I war risk insurance. Unity is available to clients of all Lloyd’s registered brokers, to provide added support to ongoing humanitarian efforts and alleviate continued pressure on supply chains and global food security.
John Doyle, President and Chief Executive Officer, Marsh McLennan, commented: “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.”
Yulia Svyrydenko, First Deputy Prime Minister of Ukraine and Minister of Economy, said: “Expanding insurance to cover ships carrying all non-military cargo is extremely important for Ukraine, especially in terms of exporting metallurgical products, as the full-scale invasion has heavily affected this sector. In 2023, compared to 2021, steel production decreased by 3.4 times, and exports of metallurgical products decreased several times.
"Insuring vessels backs our efforts to increase the volume of all non-raw material product exports, in particular iron ore and steel. Strengthening the processing industry and developing non-raw material exports are priorities for the government to enhance our country’s economic resilience.”
John Neal, Lloyd’s CEO, added: “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.”
Ascot said: “Ascot are delighted to be supporting Marsh and Ukraine with the enhanced scope of the facility.”
