Aon and Marsh want end of blanket exclusions for Ukraine

Aon and Marsh McLennan have come together to call on the (re)insurance industry to help boost Ukraine’s resilience and economy by removing blanket exclusions on the country and stop lumping it in with Russia and Belarus.

The brokers said that the removal of blanket exclusions, which they stressed ignore the diversity of risk throughout Ukraine, would be a big support for the country.

The firms believe that “arbitrary exclusions for Ukraine” contribute to confusion about the “vastly different levels” of risk in the country. “As a result, there are potential issues with how (re)insurers underwrite risks between regions directly impacted by the war and many areas of central and western Ukraine that have suffered little to no war damage,” said the brokers in a joint statement.

They also want carriers to stop treating Ukraine, Russia and Belarus as the same risk.

“Since the start of the war, 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 European Union,” the brokers said.

Aon and Marsh said the use of data and analytics can enable more impactful insights into where insurance capital can contribute to Ukraine’s reconstruction and further economic growth.

“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.”