Marsh McLennan, a re/insurance broker, in collaboration with the Ukrainian government and Lloyd’s, announced the expansion of its Unity insurance facility (Unity) to now cover war risk insurance for ships carrying all non-military cargo.
Initially launched in November 2023 to provide affordable war risk insurance for grain shipments and other critical food supplies globally, Unity offers reduced premiums for hull and separate protection & indemnity (P&I) war risk insurance.
John Neal, CEO at Lloyd’s, highlights the collaboration efforts amidst challenging circumstances: “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.”
This expansion broadens Unity’s coverage to include Ukraine’s leading export industries such as iron ore, steel, electrical equipment, and animal fodder, in addition to grain.
With lower premiums and secured trade routes, this initiative aims to support Ukraine’s export industry and boost its economy amidst the challenges of war.
Ukrainian banks, supported by DZ Bank, will continue compensating shipowners and charterers. Unity, led by Ascot and backed by Lloyd’s and London insurers, offers up to $50 million in war risk insurance, accessible through all Lloyd’s registered brokers.
John Doyle, President and CEO at Marsh McLennan, emphasises the importance of this public-private partnership in supporting Ukraine’s economy.
Doyle states, “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, states, “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.”
“Ascot are delighted to be supporting Marsh and Ukraine with the enhanced scope of the facility,” added Ascot.
