Insurers urged to help businesses bolster resilience against long-terms effects of Ukraine war

The insurance industry is being urged to help customers build greater resilience against the long-term effects of the war in Ukraine.

Whilst a number of specific solutions are already addressing some of the key concerns, such as Lloyd’s facility to insure crucial shipments of grain out of Ukraine, and the role of established energy and nuclear insurance markets in underpinning energy security strategies, more needs to be done, for instance in the areas of supply chain and reputational risk, to bolster resilience in the face of the crisis, according to a joint report from Lloyd's and Aon.

Published today, Ukraine: A conflict that changed the world: The re/insurance industry response explores the role of the re/insurance industry in building resilience against the medium to long term consequences of such seismic economic and geopolitical change.

Based on in-depth interviews with 75 sector experts and practitioners across Aon and Lloyd’s, the report combines proprietary data with a range of thought leadership and third-party analysis across cyber, supply chain, food security, climate transition, energy security, ESG and public sentiment.

John Neal, chief executive officer of Lloyd’s, said: ‘The type of collaboration shown in this report, between Aon and Lloyd’s demonstrates the true value proposition of insurance – the sharing of risk between many to protect the misfortunes of the few.

“Lloyd’s occupies a unique position within the industry, bringing people together to drive innovative, sustainable insurance solutions at times of global crisis, and there is no greater need to fulfil this commitment than during the economic and humanitarian crisis we see today.

“Lloyd’s will continue to deploy its expertise and resources to help businesses respond to the consequences of the conflict, sharing risk to create a braver world.’

Dominic Christian, global chairman of reinsurance solutions at Aon, added: ‘The tangible impacts of the Ukraine conflict are evident across the world and across industries. Although the insurance market has reacted quickly and effectively to support policyholders, the crisis has exposed gaps that show we must move further and faster.

“A focus on developing innovative products and solutions is essential to ensure our industry plays its critical role helping organisations navigate an increasingly volatile risk landscape and make better decisions.”

In support of these efforts, Lloyd’s and Aon have also agreed to establish an innovation forum to help support the commercialisation of new solutions to address emerging customer needs.

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