Broker McGill and Partners announced the launch of a commercial property war risk reinsurance program for Ukraine. This marks the first program of its kind since the Russian invasion began in February 2022. Securing insurance for Ukrainian businesses has been challenging due to exclusions placed on the country by Western reinsurers.
This new initiative, a collaboration between McGill and Ukrainian insurer ARX, offers up to $50 million in coverage per commercial property policy. Reinsurance is provided by London-based firms, including Lloyd’s of London syndicates. The program leverages FortuneGuard’s technology, which utilizes official data on projectile strikes in Ukraine to assess the risk of war damage. Coverage is available for properties located more than 100 kilometers (62 miles) from the front lines.
According to Hamish Greenwood, Head of Crisis Management at McGill, the program was developed over several months. He stated that a blanket exclusion across all of Ukraine was deemed unfair due to the varying levels of risk in different regions. Seven London firms have already committed to offering coverage under this program.
This program follows initiatives by organizations like the European Bank for Reconstruction and Development and the U.S. International Development Finance Corporation, which have backed war insurance in Ukraine for transit goods, vehicles, healthcare, and agriculture. Broker Marsh also offers a cargo transportation insurance program for the Black Sea corridor with support from Ukrainian state banks. This new commercial property program signifies a significant step towards providing much-needed risk mitigation solutions for businesses in Ukraine. The program’s innovative use of data-driven risk assessment and collaboration between international and local insurers demonstrates a commitment to supporting Ukrainian recovery and economic resilience.
