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Marsh McLennan collaborates with Ukrainian government, banks, and insurers to provide cost-effective insurance for Black Sea grain shipments
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Marsh McLennan (NYSE: MMC) announces the launch of Unity, a new facility in collaboration with the Ukrainian government and financial institutions to provide affordable insurance supporting the export of grain and other critical food supplies globally from Ukraine’s Black Sea ports. Underwritten by insurers at Lloyd’s of London, Unity will offer up to US$50 million in hull and separate protection & indemnity (P&I) war risk insurance.
Positive
The public-private partnership between Marsh McLennan and the Ukrainian government, along with financial institutions, demonstrates a commitment to supporting global food security through the export of grain and critical food supplies. The launch of Unity will provide much-needed affordable insurance for shipowners and charterers, potentially increasing the volume of grain exports from Ukraine's Black Sea ports and contributing to the country's economic growth.
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Public-private partnership will enable grain exports from Ukraine at scale and support global food security
LONDON--(BUSINESS WIRE)--
Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people, in collaboration with the Ukrainian government, the Export Credit Agency of Ukraine, Ukreximbank, Ukrgasbank and DZ Bank, today announced the launch of a new facility – Unity – to provide affordable insurance supporting the export of grain and other critical food supplies globally from Ukraine’s Black Sea ports.
Underwritten by insurers based at Lloyd’s of London, Unity will provide up to US$50 million in hull and separate protection & indemnity (P&I) war risk insurance. 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 which itself is backed by the Ukraine Ministry of the Economy, providing shipowners and charterers with war risk insurance in the absence of safe corridors. Global law firm, Norton Rose Fulbright, provided advisory services.
As with the ‘As One’ facility launched to provide insurance under the now defunct Black Sea Grain Initiative in July 2022, Marsh will extend the new Unity facility to clients of Lloyd’s of London registered brokers, to provide added support to ongoing humanitarian efforts and alleviate continued pressure on supply chains and global food security.
John Doyle, President and Chief Executive Officer, Marsh McLennan, commented: “Marsh McLennan is committed to mobilizing our unique expertise to support global food security and stability. The launch of this insurance facility will especially benefit the developing nations that buy much of Ukraine’s grain and also help Ukraine’s future recovery and reconstruction endeavors. Through these efforts, we are fulfilling our purpose as a company to give our communities and clients the confidence to thrive.”
Denys Shmyhal, Prime Minister of Ukraine, said: “The launch of the Unity facility will enable Ukraine to provide vital food supplies to the world at the same time as supporting the Ukrainian economy and keeping the Black Sea open for international trade. 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.”
Today’s launch follows June’s announcement when Marsh McLennan committed to provide services on a pro-bono basis to the Ukrainian government which – as well as Marsh’s insurance expertise – 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.
Marcus Baker, Global Head of Marine, Cargo & Logistics, Marsh, said: “The creation of this public-private partnership, with insurers working in tandem with the Ukrainian government and its banks, will accelerate the urgent resumption of vital grain exports amid the ongoing effects of this brutal conflict. Unity’s unique structure will enable underwriters to price risks at more affordable levels than those experienced in recent months.”
John Neal, CEO, Lloyd’s, added: “Lloyd’s welcomes the establishment of this insurance facility, which brings together the expertise of our market to provide an innovative solution that will ensure the safe transport of Ukrainian grain and agricultural products out of the Black Sea and help alleviate global food insecurity.”
About Marsh McLennan
Marsh McLennan (NYSE: MMC) is the world’s leading professional services firm in the areas of risk, strategy and people. The Company’s more than 85,000 colleagues advise clients in 130 countries. With annual revenue of over $20 billion, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment through four market-leading businesses. Marsh provides data-driven risk advisory services and insurance solutions to commercial and consumer clients. Guy Carpenter develops advanced risk, reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities. Mercer delivers advice and technology-driven solutions that help organizations redefine the world of work, reshape retirement and investment outcomes, and unlock health and wellbeing for a changing workforce. Oliver Wyman serves as a critical strategic, economic and brand advisor to private sector and governmental clients. For more information, visit marshmclennan.com, or follow us on LinkedIn and X.
What is the new facility launched by Marsh McLennan and its partners?
Unity is a new facility aimed at providing affordable insurance supporting the export of grain and other critical food supplies globally from Ukraine’s Black Sea ports.
How much war risk insurance does Unity offer?
Unity will provide up to US$50 million in hull and separate protection & indemnity (P&I) war risk insurance.
Who are the key partners in this public-private partnership?
The key partners in this initiative include the Ukrainian government, the Export Credit Agency of Ukraine, Ukreximbank, Ukrgasbank, and DZ Bank, along with insurers at Lloyd’s of London and global law firm Norton Rose Fulbright.
What role does the Ukraine Ministry of the Economy play in this initiative?
The Ukraine Ministry of the Economy is backing the facility to provide shipowners and charterers with war risk insurance in the absence of safe corridors, contributing to global food security.
How will the launch of Unity impact grain exports from Ukraine?
The launch of Unity is expected to potentially increase the volume of grain exports from Ukraine's Black Sea ports, contributing to the country's economic growth and global food security.
