Aon, Marsh McLennan to industry: "End blanket exclusions for Ukraine"
Aon, Marsh McLennan to industry: “End blanket exclusions for Ukraine” | Insurance Business Canada
Reinsurance
Aon, Marsh McLennan to industry: “End blanket exclusions for Ukraine”
Plea aimed at broadening access to insurance capital ahead of recovery
Reinsurance
By
Terry Gangcuangco
Aon and Marsh McLennan have urged the re/insurance industry to eliminate blanket coverage exclusions for Ukraine to help boost the country’s resilience ahead of its recovery.
According to the two broking giants, Ukraine, Russia, and Belarus have been grouped by many reinsurers when it comes to risks, resulting in Ukraine’s exclusion from reinsurance contracts and the country having restricted access to insurance capital.
Aon and Marsh McLennan argued that Ukraine’s inclusion in the same category as Russia and Belarus is inconsistent with data-driven risk assessments, overlooking Ukraine’s efforts to align with democratic values and the European Union.
“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,” stated John Doyle, president and chief executive of Marsh McLennan. “We call on the global insurance community to join us in this effort and end blanket exclusions for Ukraine.”
Aon CEO Greg Case added: “Aon’s support of Ukraine leads us to look forward to its economic recovery. Insurance capital is essential for the reconstruction of Ukraine’s health care, energy, and agricultural sectors. We’re asking the insurance industry to look closely at Ukraine’s risks and work to strengthen the public-private partnerships under development.”
Both firms are already collaborating with the Ukrainian, US, and UK governments, as well as other international bodies, to support Ukraine’s economy amid ongoing hostilities and drive investment for future recovery.
In March, Marsh McLennan expanded its public-private partnership with the government in Ukraine to cover all shipping activities to and from the country’s ports. The initiative builds on Marsh McLennan’s assistance in developing a war risk data platform that provides insurers and investors with detailed information on the conflict’s impact.
Similarly, in June, Aon partnered with the US International Development Finance Corporation to launch a pioneering insurance program offering war risk policies for businesses operating in Ukraine. The program aims to boost investment in key sectors, facilitating economic growth and job creation, and reinforcing Ukraine’s economic stability as it rebuilds.
The two companies stressed that the use of indiscriminate exclusions for Ukraine exacerbates misunderstandings regarding the diverse levels of risk within the country. They pointed out that some regions, particularly central and western Ukraine, have seen little to no direct conflict-related damage.
Data and analytics, it was highlighted, can provide valuable insights to help the industry channel capital effectively, aiding Ukraine’s reconstruction and growth.
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