Marsh McLennan and Aon advocate for targeted reinsurance support to boost Ukraine’s economic recovery

Aon and Marsh McLennan urged the (re)insurance industry to leverage its resources, expertise, and experience to help Ukraine rebuild its economy and strengthen its foundations after the conflict. They argued that removing broad exclusions that fail to account for different types of risks across the country would better support Ukraine’s economic recovery.

Since the war began, many global reinsurers have lumped risks from Ukraine, Russia, and Belarus together, excluding them from reinsurance contracts. This approach has limited the availability of (re)insurance capital, hurting economic growth and stability. However, grouping Ukraine with Russia and Belarus does not reflect the data-driven risk assessments typically used and ignores Ukraine’s efforts to align as a free, democratic economy and potential EU member.

Marsh McLennan and Aon are already collaborating with the governments of Ukraine, the US, and the UK, as well as other international organizations, to support Ukraine’s economy during ongoing attacks and to promote investment for its future recovery.

In March, Marsh McLennan expanded its public-private partnership with Ukraine to cover all shipping to and from the country’s ports. This builds on their earlier work helping Ukraine develop a war risk data platform that provides detailed, transparent data on the conflict’s impact, helping investors and (re)insurers better understand war-related risks.

In June, Aon partnered with the US International Development Finance Corporation to create a unique insurance program that supports war risk policies for businesses operating in Ukraine. Providing insurance for war-related risks, particularly in sectors like healthcare and agriculture, is expected to boost economic growth and employment, laying a stronger foundation for Ukraine’s reconstruction.

Both companies emphasize that arbitrary exclusions for Ukraine lead to confusion about the varying levels of risk across the country. This creates challenges in how (re)insurers assess risks between war-affected areas and regions in central and western Ukraine that have seen little or no damage. They argue that better use of data and analytics can provide more targeted insights into where insurance capital can most effectively support Ukraine’s reconstruction and economic development.