LONDON, Jan 9 (CapIns) - Broker McGill and Partners has introduced a groundbreaking war risk reinsurance program for commercial properties in Ukraine, marking the first initiative of its kind since Russia’s invasion in February 2022.
Ukrainian businesses have faced significant challenges in securing insurance as Western reinsurers continue to impose exclusions on coverage within the country. McGill’s collaboration with local insurer ARX has paved the way for policies offering up to $50 million in coverage for each property, supported by reinsurance from firms in London, including Lloyd’s of London syndicates.
To evaluate war risks, insurance technology company FortuneGuard will leverage official data on projectile trajectories in Ukraine. McGill stated that properties situated more than 100 kilometers (62 miles) from active front lines would qualify for coverage.
Hamish Greenwood, McGill’s head of crisis management, said the initiative had been months in the making. “We never felt a blanket exclusion across all of Ukraine was fair, because the risk in the west is not the same as the risk in the east,” Greenwood said. Seven London-based firms have already committed to participating in the program, he added.
This initiative complements efforts by multilateral organizations such as the European Bank for Reconstruction and Development and the U.S. International Development Finance Corporation. These entities have backed war insurance for goods in transit, as well as healthcare and agricultural sectors in Ukraine.
Separately, broker Marsh provides insurance coverage for cargo traveling through the Black Sea corridor, supported by Ukrainian state banks.
The introduction of this program signals a significant step forward in providing businesses in safer regions of Ukraine with much-needed insurance solutions amidst ongoing uncertainties. (Reuters)
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