The firms emphasised that removing blanket exclusions, which fail to account for the varying risk levels across Ukraine, would help stimulate the country’s economic growth and strengthen its foundation for a future rebuild.
Since the onset of the war, many global reinsurers have bundled risks from Ukraine, Russia, and Belarus together, excluding them from reinsurance contracts. This practice has restricted (re)insurance capital, hindering Ukraine’s economic stability.
Aon and Marsh McLennan argue that treating Ukraine the same as Russia and Belarus is not supported by risk data and analytics. They emphasized that Ukraine, despite the conflict, is working toward closer alignment with the European Union as a free and democratic economy, and should be treated accordingly by the (re)insurance industry.
“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,” 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 of Ukraine leads us to look forward to its economic recovery,” said Greg Case, CEO of Aon. “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.”
In March, Marsh McLennan expanded its public-private partnership with the Ukrainian government to cover all shipping to and from Ukraine’s ports. This followed the company’s assistance in helping Ukraine develop a war risk data platform, offering investors and (re)insurers detailed, transparent data on the conflict’s impact and the degree of war risk.
Partnership with US IDFC
In June, Aon partnered with the US International Development Finance Corporation (IDFC) to launch an innovative insurance program designed to support war risk policies for businesses operating in Ukraine. The availability of war risk insurance, particularly in sectors like healthcare and agriculture, is expected to boost economic growth and employment while laying the groundwork for a strong post-conflict reconstruction.
Both firms argue that arbitrary exclusions for Ukraine create confusion by overlooking the significant differences in risk levels across the country. This generalisation impacts how (re)insurers underwrite risks, particularly in regions directly affected by the war compared to many parts of central and western Ukraine that have seen minimal to no conflict.
By using advanced data and analytics, insurers can gain clearer insights into where insurance capital can most effectively contribute to Ukraine’s reconstruction and economic growth.
Editor’s note: Join Aon and Marsh Leaders at Insurtech Insights Asia 2024 in Hong Kong on December 4th and 5th. John Morley, CEO, APAC, Strategy and Technology Group, will be moderating two sessions, namely ‘Green Insurance: Aligning Financial Goals with Environmental Responsibility’ and ‘Balancing Risk and Return:Strategic Asset Management in the Changing Insurance Landscape.’
Cinde Law, SVP, Asia Affinity Customer Experience and Digital Leader, will also be taking part in the panel discussion, ‘What’s Next for Agents and Brokers in the Asian Insurance Industry?’ Click here for more information.
