McGill Offers Property War Reinsurance for Ukraine

In a significant development, broker McGill and Partners has launched a commercial property war risk reinsurance programme for Ukraine, marking the first such initiative since Russia's invasion in February 2022. This move aims to address the challenges faced by businesses in obtaining insurance coverage due to Western reinsurers' blanket exclusions on the country.



The programme, a collaboration between McGill and local Ukrainian insurer ARX, provides up to $50 million in cover for each commercial property policy. Reinsurance is provided by firms in London, including Lloyd's of London syndicates. FortuneGuard, an insurance technology company, will use official data on projectiles fired into Ukraine to assess the likelihood of war damage, ensuring a data-driven and accurate risk assessment.

Hamish Greenwood, head of crisis management at McGill, stated, "We never felt a blanket exclusion across all of Ukraine was fair, because the risk in the west is not the same as the risk in the east." By offering coverage for properties more than 100 km (62 miles) from the front line, the programme acknowledges the varying risks across different regions in Ukraine, fostering business activity and economic growth in less affected areas.

The programme is expected to benefit local Ukrainian insurers by increasing their capacity to offer war risk cover and providing access to the international reinsurance market. This collaboration supports the Ukrainian economy by encouraging businesses to invest in the country's recovery and reconstruction efforts.

The launch of McGill's reinsurance programme is a positive step towards rebuilding Ukraine's insurance market and fostering economic growth. As the conflict continues, such initiatives are crucial in providing businesses with the confidence and security they need to invest in the country's future.