Broker McGill Offers Property War Reinsurance for Ukraine
Broker McGill and Partners has launched a commercial property war risk reinsurance program for Ukraine, which it said on Thursday was the first of its kind since Russia’s invasion of the country in Feb 2022.
McGill said it had collaborated with local Ukrainian insurer ARX to provide up to $50 million in cover for each commercial property policy, with reinsurance from firms in London including Lloyd’s of London syndicates.
FortuneGuard, an insurance technology company, will use official data on projectiles fired into Ukraine to assess the likelihood of war damage. Cover will be available for properties which are more than 100 km (62 miles) from the front line, McGill said in a statement.
Hamish Greenwood, head of crisis management at McGill, said the broker had been working for some months to set up the program.
“We never felt a blanket exclusion across all of Ukraine was fair, because the risk in the west is not the same as the risk in the east,” Greenwood said. Seven London firms have already agreed to offer cover under the program, Greenwood added.
Multilateral organizations the European Bank for Reconstruction and Development and the U.S. International Development Finance Corporation have already stepped in to back war insurance in Ukraine for goods and vehicles in transit, and healthcare and agriculture respectively.
Broker Marsh offers an insurance program for cargo transportation through the Black Sea corridor, with the support of Ukrainian state banks.
(Reporting by Carolyn Cohn; editing by Christina Fincher)
Photograph: Bulk grain cargo ship TQ Samsun is anchored in the Black Sea near the entrance of the Bosphorus Strait in Istanbul, Turkey, on Monday, July 17, 2023. (Sercan Ozkurnazli/Dia Images via AP)
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