Military Risks: Marsh McLennan to Help Ukraine Access Terrorism Insurance Markets

International reinsurance broker Marsh McLennan has announced a partnership with the Ukrainian government to facilitate access to the global insurance market.

According to a statement on the Marsh McLennan website, the company will work with the Ukrainian government and insurers to create a platform that provides the necessary data for assessing war risks in Ukraine. This is essential to offer commercial insurance protection and unlock investment capital. The platform will provide access to the required data, enabling insurers to more confidently evaluate and insure military risks in the country, thus enhancing market readiness.

The Ukrainian government has already committed to sharing detailed information with the insurance industry to ensure effective and targeted risk modeling for the reconstruction of the commercial insurance market.

In turn, Marsh McLennan has proposed the establishment of a pool for insuring military risks to the governments of Ukraine and the G7 countries.

"This will be a multinational public-private partnership based on existing terrorism insurance pools currently operating in several G7 countries," the statement said.

It is also emphasized that Marsh McLennan will carry out this work on a pro bono basis.

"I am proud that our colleagues stand with the people of Ukraine," stated John Doyle, President and CEO of Marsh McLennan, as quoted in the announcement.

Deputy Minister of Economy of Ukraine, Oleksandr Hryban, added that access to the global insurance market is vital for initiating the long path to Ukraine's economic recovery.

"This support from Marsh McLennan is a crucial step in helping us attract the necessary investments for rebuilding and strengthening," he explained.

Marsh McLennan is a leading global company providing professional services in risk management, strategy, and human capital management. With over 85,000 employees, the company advises clients in 130 countries worldwide, generating annual revenue of over $20 billion.

Recall that the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, has started providing guarantees for insuring military risks in Ukraine. This is the first such project. Insurance against military risks in Ukraine will be facilitated through the Surety Trust Fund for the Reconstruction and Economy of Ukraine (SURE). The agreement to increase the guarantee from €17.1 million to €40.85 million between MIGA and the German banking holding ProCredit was signed in London during the Ukraine Recovery Conference 2023 (URC-2023).

Additionally, UK Prime Minister Rishi Sunak announced a new program of military risk insurance to support Ukraine's recovery at the conference in London.

The issue of insuring investment military risks is crucial for attracting funds for the country's reconstruction. Currently, several projects are being considered to cover the country's risks and provide military insurance.

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