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Aon and Marsh McLennan, the world's biggest insurance brokers, have called on the insurance industry to scrap their blanket exclusions of coverage in Ukraine and start offering insurance again despite the ongoing war.
The blanket exclusion of Ukraine, along with Russia and its ally, Belarus, "overlooks that Ukraine, while under siege, seeks to further align as a free and democratic economy and member of the European Union," the companies said in a joint press release.
The exclusion of Ukraine also ignores "the diversity of risk throughout the country," with some areas, particularly in the west, relatively untouched by the physical damage wrought by the war and others, principally in the south and east. on the front lines.
Foreign investors wanting to participate in the reconstruction of Ukraine often cite a lack of insurance as the main reason for their reluctance to enter the country until the war ends. The lack of coverage also ensures that civilian airplanes can't fly in the country, forcing even foreign leaders to take the train, and business visits are comparatively rare.
“Insurance capital is essential for the reconstruction of Ukraine’s health care, energy and agricultural sectors," said Aon CEO Greg Case. "We’re asking the insurance industry to look closely at Ukraine’s risks and work to strengthen the public-private partnerships under development.”
Marsh McLennan has worked out a plan with the government of Ukraine to help provide war-risk insurance for shipping to and from Ukrainian ports. Aon, meanwhile, partnered with the US International Development Finance Corporation (DFC) to create an insurance program supporting businesses operating in Ukraine.
