Insurer Ascot Group, which provides insurance and reinsurance through its Lloyd’s and Bermuda platforms and in the US via Ascot US and Ethos, has linked with global insurance broker Marsh to launch marine cargo and war insurance for grain and food products moving from Ukrainian Black Sea ports, the two firms and commercial insurance market Lloyd’s announced on Friday July 29th.
Ascot said that the Marine Cargo and War facility would 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 $50m in all-risks marine cargo and war coverage. The facility will enable ships transporting grain, and other designated food products from Ukrainian ports, to have “reliable and readily available
coverage in place for their export voyages”, Marsh and Ascot said.
Chris McGill, Head of Cargo at Ascot, said that, under the terms of the treaty, ships could transit designated Ukrainian ports through safe access corridors.
Patrick Tiernan, Chief of Markets at Lloyd’s, said that the recovery of the grain supplies was “vital to addressing global food insecurity and market uncertainty at this difficult time”. He said that the new facility would 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, said that the facility would help unlock supply chains, alleviate mounting pressures on global food security, and benefit nations and communities around the world.”
Although UN aid chief Martin Griffiths said on Thursday that he was hopeful that the first shipment of grain from a Ukrainian Black Sea port could take place as early as last Friday, he accepted that crucial details for the safe passage of vessels were still being worked out.
