Aon and Marsh call for removal of blanket exclusions for Ukraine

Aon and Marsh McLennan have called on the re/insurance industry to build upon the capital, expertise and historical role of the re/insurance industry to help Ukraine’s resilience by catalysing economic growth and strengthening the country’s foundations for a post-conflict economy. The firms emphasised that the removal of blanket exclusions, which ignore the diversity of risk throughout the country, would further support Ukraine’s economy.

Since the invasion by Russia many global reinsurers have grouped risks originating in Ukraine, Russia, and Belarus together, excluding them from reinsurance contracts, limiting re/insurance capital and impeding economic growth and stability.

“The inclusion of Ukraine with Russia and Belarus is not rooted in the data and analytics that drive the assessment of risk and overlooks that Ukraine, while under siege, seeks to further align as a free and democratic economy and member of the EU,” the firms said in a joint statement. 

“The availability of insurance for war risk will stimulate economic expansion and employment.”

Marsh McLennan and Aon are already both working with the Ukraine, US and UK governments, along with many other international organisations, to support Ukraine’s economy as it endures ongoing attacks and to accelerate investment in the country’s eventual economic recovery.

In March, Marsh McLennan announced the expansion of its public-private partnership with the Ukraine government to cover all shipping to and from Ukraine’s ports. This follows Marsh McLennan’s support in helping the Ukraine government develop its war risk data platform which provides investors and re/insurers with granular transparent data on the impact of the conflict to date and degree of war risk. 

In June, Aon worked with the US International Development Finance Corporation to create a first-of-its-kind insurance programme to support war risk policies for businesses operating in Ukraine. The availability of insurance for war risk, especially across healthcare and agriculture, will stimulate economic expansion and employment, while strengthening the foundation of Ukraine’s economy to support a robust reconstruction.

For more news from the Rendez-Vous de Septembre (RVS) click here.

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