Brokerage giants Aon and Marsh join forces to seek industrial aid for Ukraine

Highlighting the existence of general exclusions from reinsurance contracts for risks arising from the region affected by the ongoing Russia-Ukraine conflict, Aon and Marsh McLennan are jointly calling for their removal.

In a joint statement issued on Sunday, the insurance brokerage firms said the exclusions “ignore the diversity of risks” in the region.

According to the statement, since the beginning of the war, many global reinsurers have bundled risks originating from Ukraine, Russia and Belarus, excluding them from reinsurance contracts, limiting (insurance and reinsurance) capital and hindering economic growth and stability.

“The inclusion of Ukraine with Russia and Belarus is not rooted in the data and analysis driving the risk assessment and overlooks the fact that Ukraine, while under siege, is still trying to align itself as a free and democratic economy and member of the European Union.” the statement said.

“Marsh McLennan is committed to our support for Ukraine, helping it attract global investment to rebuild the country and recover from the devastating impact of war on its people and economy,” said John Doyle, President and CEO of Marsh McLennan. “We call on the global insurance community to join us in this effort and end blanket exclusions for Ukraine.”

“Aon’s support for Ukraine makes us look forward to its economic recovery,” said Greg Case, CEO of Aon. “Insurance capital is critical to rebuilding Ukraine’s health, energy and agriculture sectors,” he added. “We call on the insurance industry to take a close look at Ukraine’s risks and work to strengthen emerging public-private partnerships.”

The statement cited initiatives already in the works, aligning Marsh McLennan and Aon with the Ukrainian, US and UK governments and other international organizations to support Ukraine’s economy as the country suffers ongoing attacks and to accelerate investment in the eventual economic recovery.

• In March, Marsh McLennan announced the expansion of its public-private partnership with the government of Ukraine to cover all shipments to and from Ukrainian ports.
• Marsh McLennan also helped the Ukrainian government develop a war risk data platform, providing investors and insurers with transparent granular data on the impact of the conflict.
• In June, Aon partnered with the US International Development Finance Corporation to create an insurance program to support war risk policies for businesses operating in Ukraine.

“The availability of war risk insurance, particularly in healthcare and agriculture, will stimulate economic expansion and employment, while strengthening the foundation of Ukraine’s economy to support robust reconstruction,” the statement said.

Underscoring the arbitrary nature of the exclusions for Ukraine, the brokerages said the exclusions “contribute to confusion about the very different levels of risk in the country”, suggesting that insurers should distinguish between regions directly affected by the war and those that have suffered little or no damage. in the central and western areas of Ukraine. “Using data and analytics can enable more impactful insights into where insurance capital can contribute to Ukraine’s reconstruction and subsequent economic growth,” the statement said.

Source: Aon, Marsh McLennan

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