Marsh, Lloyd's launch Ukraine war risk insurance facility

Insurance broker Marsh , Lloyd's of London insurers and Ukrainian state banks have launched a programme to reduce the cost of claims for damage to ships and crew transporting grain through the Black Sea corridor, Marsh said on Wednesday.

Insurance broker Marsh , Lloyd's of London insurers and Ukrainian state banks have launched a programme to reduce the cost of claims for damage to ships and crew transporting grain through the Black Sea corridor, Marsh said on Wednesday. Kyiv launched a "humanitarian corridor" in August for ships bound for African and Asian markets to try to circumvent a de facto blockade in the Black Sea after Russia quit a United Nations-brokered deal that had guaranteed Kyiv's seaborne exports during the war.

Lloyd's of London insurers will underwrite the programme, which provides $50 million of hull war risk cover and $50 million of professional and indemnity (P&I) insurance for every voyage. Ships typically have P&I insurance, which covers third-party liability claims including environmental damage and injury. Separate hull and machinery policies cover vessels against physical damage.

The State Export-Import Bank of Ukraine (Ukreximbank) and state-owned lender Ukrgasbank will provide standby letters of credit, each confirmed by Germany's DZ Bank, Marsh said in a statement. The facility is backed by Ukraine's Ministry of the Economy.

Ukrainian Prime Minister Denys Shmyhal said late on Tuesday that the arrangement involved 14 insurance companies.