Marsh McLennan launches ‘Unity’ collaboration to insure Ukrainian Black Sea exports

Published on Wed, 13/12/2023 - 14:40

The broking firm said in a statement that it will be working with the Ukrainian government, the Export Credit Agency of Ukraine, Ukreximbank, Ukrgasbank, and DZ Bank to launch the initiative, which will be concentrated on ports along Ukraine’s Black Sea ports.

John Doyle, president and chief executive officer of Marsh McLennan, said: “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 endeavours.

“Through these efforts, we are fulfilling our purpose as a company to give our communities and clients the confidence to thrive.”

Underwritten by insurers based at Lloyd’s of London, Unity will provide up to $50m in hull and separate protection & indemnity (P&I) war risk insurance per risk.

The Ukrainian banks 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 previous ‘As One’ facility launched to provide insurance under the now defunct Black Sea Grain Initiative, Marsh will extend the Unity facility to clients of Lloyd’s brokers, to provide added support to ongoing humanitarian efforts and alleviate continued pressure on supply chains and global food security.