Specialty re/insurance group Ascot and broker Marsh have launched a marine cargo and war facility, which will provide coverage for vital grain and food products transitioning through safe corridors established by the newly signed Black Sea Treaty between Russia and Ukraine.
Placed by Marsh, and led by Ascot, the Lloyd’s facility will provide up to $50 million of cover in marine cargo and war insurance.
Additionally, the facility will allow ships transporting grain, and other designated food products from Ukrainian ports, to have reliable and readily available coverage in place for their export voyages.
Chris McGill, Head of Cargo at Ascot, said: “This bespoke, mission focused facility allows the insurance market to play its part in enabling the vital transportation of grain and food products out of Ukraine to the wider world. Under the terms of the treaty, ships can transit designated Ukrainian ports through safe access corridors. Ascot, and the London market, is delighted to be doing its part to catalyse this humanitarian venture.”
Patrick Tiernan, Chief of Markets at Lloyd’s, commented: “The recovery of these grain supplies is vital to addressing global food insecurity and market uncertainty at this difficult time. The facility announced by our market today is of paramount importance. It will add essential protections to the deal brokered by the UN last week and represents the latest support from Lloyd’s and the insurance industry to help the international community respond to the conflict.”
David Roe, Head of Cargo, UK, Marsh, added: “This facility is a major development in assisting our cargo clients manage the risks associated with operating in the Black Sea during this terrible time of war. Not only will it help unlock supply chains, it will alleviate mounting pressures on global food security, which will benefit nations and communities around the world.”
Source: Reinsurance News