Marsh McLennan, the world's leading professional services firm in the areas of risk, strategy and people, in collaboration with the Ukrainian government, the Export Credit Agency of Ukraine, Ukreximbank, Ukrgasbank and DZ Bank, has announced the launch of a new service - Unity - to provide affordable insurance to support ships transporting grain and other food supplies from its Black Sea ports.

Backed by insurers based at Lloyd’s of London, Unity will offer up to US$50 million in separate hull, navigation, war and protection and indemnity (P&I) insurance. Ukreximbank, the State Export-Import Bank of Ukraine, and the Ukrainian state bank Ukrgasbank will provide standby letters of credit, each confirmed by DZ Bank, to support the credit line, which is in turn backed by the Ministry of Economy of Ukraine, providing shipowners and charterers with war risk insurance in the absence of insurance brokers. Global law firm Norton Rose Fulbright provided advisory services to this project.

Like the "As One" entity launched to provide insurance under the now-defunct Black Sea Grain Initiative in July 2022, Marsh will extend the new Unity facility to clients of Lloyd's of London registered brokers, to provide additional support to ongoing humanitarian efforts and alleviate continued pressure on supply chains and global food security.

John Doyle, Chairman and CEO of Marsh McLennan, said: "Marsh McLennan is committed to contributing our expertise to strengthening global food security and stability. The launch of this insurance mechanism will particularly benefit developing nations. "We are developing companies that buy much of Ukraine's grain and will also help in the future recovery and reconstruction of Ukraine. We are fulfilling our purpose as a company to give our communities and customers the confidence necessary to prosper."

Denys Shmyhal, Prime Minister of Ukraine, added: "The launch of the Unity facility will allow Ukraine to supply vital food to the world, while supporting the Ukrainian economy and keeping the Black Sea open to international trade. This partnership between the Ukrainian Government, Marsh McLennan and Lloyd's of London is a sign of confidence in our economy and shows that Ukraine is open for business."

This launch follows the announcement in June, when Marsh McLennan committed to providing pro-bono services to the Ukrainian government that - in addition to Marsh's insurance expertise - include building a data platform for assessing war risks in Ukraine, strategic advisory services from Oliver Wyman, and catastrophe reinsurance modeling from Guy Carpenter.

Marcus Baker, Global Leader of Marsh's Maritime, Cargo and Logistics practice, highlighted that: "The creation of this public-private partnership, in which insurers work together with the Ukrainian government and its banks, will accelerate the urgent resumption of vital grain exports amid the ongoing effects of this brutal conflict. Unity's unique structure will allow underwriters to price risks at more affordable levels than those experienced in recent months."

Finally, John Neal, CEO of Lloyd's, said: "Lloyd's welcomes the establishment of this insurance mechanism, which brings together the experience of our market to provide an innovative solution that will ensure the safe transport of grain and agricultural products. Ukrainians out of the Black Sea and will help alleviate global food insecurity.”

Marsh McLennan is a world-leading professional services firm in the areas of risk, strategy and people. Its more than 85,000 employees advise clients in 130 countries. With annual revenues of more than $20 billion, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment through four market-leading businesses. Marsh provides data-driven risk advisory services and insurance solutions to commercial and consumer clients. Guy Carpenter develops advanced risk, reinsurance and capital strategies that help clients grow profitably and take advantage of emerging opportunities. Mercer offers technological advice and solutions that help organizations redefine the world of work, change retirement and investment outcomes, and improve the health and well-being of an ever-changing workforce. Oliver Wyman is a key strategic, economic and brand advisor to clients in the private sector and public administration.