Marsh McLennan, the major global professional services firm specializing in risk, strategy, and human capital, has collaborated with the Ukrainian government and Lloyd’s to announce a significant expansion of its Unity insurance facility.
This expansion entails the provision of affordable war risk insurance for ships transporting all non-military cargo, including commodities such as iron ore, steel, and containerized goods. This initiative aims to further strengthen Ukraine’s maritime export infrastructure.
“Marsh McLennan is dedicated to 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,” commented John Doyle, president and CEO of Marsh McLennan.
Initially launched in November 2023 to offer accessible war risk insurance for grain shipments and other essential food commodities worldwide, Unity now extends its coverage to encompass hull and separate protection & indemnity (P&I) war risk insurance for a broader range of industries. Notably, Unity now safeguards Ukraine’s key export sectors, including iron ore, steel, electrical equipment, and animal feed, with reduced premiums compared to standard market rates.
“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,” stated Yulia Svyrydenko, first deputy prime minister of Ukraine and minister of Economy.
Moreover, the standby letters of credit, established by the state-owned Ukrainian banks Ukreximbank and Ukrgasbank and confirmed by DZ Bank, will persist in offering a first loss compensation fund to shipowners and charterers, with backing from the Government of Ukraine.
Supported by Lloyd’s and other insurers based in London, UK with Ascot leading the consortium, Unity furnishes up to US$50 million in hull and P&I war risk insurance. Accessible to clients through all Lloyd’s registered brokers, Unity aims to bolster humanitarian initiatives and relieve the strain on supply chains and global food security.
“Since the invasion of Ukraine, Lloyd’s has partnered with the United Nations, governments, regulators and insurers to keep economies and supply chains moving despite 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,” added John Neal, Lloyd’s CEO.
