Marsh McLennan has collaborated with the Ukrainian government, Ukrainian banks and insurers to provide cost-effective insurance for Black Sea grain shipments.
The launch of a new facility, Unity aims to support the global exports of grain and other critical food supplies from Ukraine’s Black Sea ports.
Underwritten by insurers based at Lloyd’s of London, Unity will provide up to US$50 million in separate protection and indemnity war risk insurance.
As part of the mandate, Marsh will extend the new Unity facility to clients of Lloyd’s of London registered brokers. This will provide added support to ongoing humanitarian efforts and alleviate pressure on supply chains and global food security.
Additionally, Ukreximbank, the State Export-Import Bank of Ukraine, and state-owned Ukrainian bank Ukrgasbank will provide standby letters of credit, each confirmed by DZ Bank, to support the facility.
Unity is backed by the Ukraine Ministry of the Economy, providing shipowners and charterers with war risk insurance in the absence of safe corridors.
The launch follows Marsh McLennan’s commitment to provide services on a pro-bono basis to the Ukrainian government. This includes building a data platform for the assessment of war risks in Ukraine, strategic advisory services from Oliver Wyman, and catastrophe reinsurance modelling from Guy Carpenter.
John Doyle, president and CEO, Marsh McLennan, comments: “Marsh McLennan is committed to mobilising our unique expertise to support global food security and stability. The launch of this insurance facility will benefit the developing nations that buy much of Ukraine’s grain and also help Ukraine’s future recovery and reconstruction endeavours.”
Denys Shmyhal, Prime Minister of Ukraine, adds: “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.”
