A new report from the specialist Lloyd’s insurance and reinsurance marketplace and Aon, the global re/insurance brokerage, highlights a number of areas and risks that require further action from the industry to help improve resilience as the war in Ukraine continues.
With Russia’s invasion of Ukraine showing little sign of ending anytime soon, Lloyd’s and Aon have released a second report focused on the response of the insurance and reinsurance industry.
The pair highlight a range of existing insurance solutions already available to address some of the main concerns, such as the facility to insure crucial shipments of grain out of Ukraine and the role of energy and nuclear insurance markets.
However, other areas, such as supply chain and reputational risk, require further action from the industry to help customers build greater resilience against the effects of the war in Ukraine, says the report.
Building on a previous report, this latest effort from Lloyd’s and Aon outlines a range of practical solutions the re/insurance sector might take, across seven key market forces of change.
In light of this call to action for the insurance and reinsurance industry, the pair are set to launch an innovation forum, designed to provide an opportunity to support the commercialisation of new solutions that address emerging customer needs.
The new initiative will bring together the unique convening power of the Lloyd’s marketplace with Aon’s expertise and customer insight in order to build on key learnings and outcomes from this report, and the previous report published by the pair.
John Neal, Chief Executive Officer (CEO) of Lloyd’s, commented: “The type of collaboration shown in this report, between Aon and Lloyd’s demonstrates the true value proposition of insurance – the sharing of risk between many to protect the misfortunes of the few.
“Lloyd’s occupies a unique position within the industry, bringing people together to drive innovative, sustainable insurance solutions at times of global crisis, and there is no greater need to fulfil this commitment than during the economic and humanitarian crisis we see today.
“Lloyd’s will continue to deploy its expertise and resources to help businesses respond to the consequences of the conflict, sharing risk to create a braver world.”
According to the two firms, the sector has already moved quickly to address a number of challenges facing clients, and they are committed to helping mitigate the increasingly complex risk globally and accelerating the delivery of innovative solutions.
“The tangible impacts of the Ukraine conflict are evident across the world and across industries. Although the insurance market has reacted quickly and effectively to support policyholders, the crisis has exposed gaps that show we must move further and faster,” said Dominic Christian, Global Chairman of Aon’s Reinsurance Solutions.
“A focus on developing innovative products and solutions is essential to ensure our industry plays its critical role helping organisations navigate an increasingly volatile risk landscape and make better decisions.
“We seek to be at the forefront of product innovation to help close protection gaps we have seen emerge over the last several months. We hope the insights from this report will lead the way for greater collaboration across our industry to help address the urgency of unmet client needs,” he continued.
