New insurance facility to cover shipping to and from Ukraine

New insurance facility to cover shipping to and from Ukraine

Marsh McLennan has announced a public-private partnership with Lloyd’s and the Ukrainian government to support Ukraine export trade by providing lower war risk premiums.

Unity now provides affordable war risk insurance with its Unity insurance facility, for ships carrying all non-military cargo, including containerised shipping.

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 and indemnity (P&I) war risk insurance at reduced premiums compared to standard market pricing.

In addition to grain, Unity will provide cover for Ukraine’s other leading export industries including iron ore, steel, electrical equipment, and animal fodder.

Standby letters of credit established by the Ukrainian state-owned banks Ukreximbank and Ukrgasbank, each verified by DZ Bank, will persist in furnishing a primary loss coverage mechanism for shipowners and charterers, bolstered by the backing of the Government of Ukraine.

READ: Five top tips for sourcing port cyber-attack insurance cover

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.”

READ: Ukraine’s Black Sea ports to receive five more cargo ships

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.”

Earlier this year, Bloomberg reported that Insurance for vessels voyaging across the Red Sea spiked amidst the increased threat from attacks by Houthi forces in Yemen.

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