Marsh PPP facility expands cover to all shipping trade at Ukrainian ports

Marsh’s Unity insurance facility – backed by Lloyds and, ultimately, the Ukrainian government – has expanded, and now offers lower war risk premiums to all ships trading in and out of Ukraine’s ports.

The facility was launched in November to provide affordable war risk insurance for grain shipments and other critical food supplies. It offers hull and separate protection and indemnity (P&I) war risk insurance at significantly reduced premiums compared to standard market pricing.

It has been expanded to cover to all ships carrying all non-military cargo – such as iron ore, steel, electrical equipment and animal fodder. The facility is providing additional support to ongoing humanitarian efforts and helping to alleviate continued pressure on supply chains and global food security.

Unity provides up to $50m in hull and P&I war risk insurance, underwritten by Lloyd’s and other London-based insurers, led by Ascot.

Standby letters of credit created by the state-owned Ukrainian banks Ukreximbank and Ukrgasbank, each confirmed by DZ Bank, will continue to provide a first loss compensation fund to shipowners and charterers, which is supported by the government of Ukraine.

Unity is available to clients of all Lloyd’s registered brokers.

John Doyle, president and CEO at Marsh McLennan, said: “We’re pleased to expand this public-private partnership with the Ukrainian government. It will provide exporters with lower premiums to ship a wider range of goods through its Black Sea trade routes and deliver major economic benefits to Ukraine.”

John Neal, Lloyd’s CEO, added: “Since the invasion of Ukraine, Lloyd’s has partnered with the United Nations, governments, regulators and insurers to keep economies and supply chains moving in spite of difficult circumstances. New partnerships between the public and private sector, including the expansion of the Marsh Unity facility, are the hallmark of the Lloyd’s market, bringing insurance experts and policymakers together to solve complex risks.”