The program marks a significant step forward in supporting the country’s economic recovery by providing crucial insurance coverage for businesses operating in war-torn regions.
The facility leverages cutting-edge technology from FortuneGuard, a Lloyd’s Lab InsurTech, which utilizes AI to analyze official data on projectiles fired into Ukraine. This data-driven approach enables a more accurate assessment of war damage risk, allowing underwriters to offer more competitive premiums while maintaining responsible risk management.
Steve McGill CBE, Founder and CEO of McGill and Partners said: “As Ukraine continues to navigate the devastating impacts of war, we recognise the significant role of the insurance industry in supporting Ukraine’s economic regrowth. Providing critical coverage for businesses in Ukraine, the launch of this groundbreaking facility marks a significant milestone in supporting Ukraine’s economic recovery and resiliency.”
He continued: “By harnessing the power of AI and comprehensive data sets, we have been able to take a more informed approach to presenting and underwriting risk. This approach has enabled us to deliver scalable reinsurance capacity at an accessible premium, adding critical coverage for businesses that were largely unprotected.”
The facility, which offers coverage of up to $50 million per risk, will be initially available to businesses located more than 100 kilometers from the front line. Reinsurers will work closely with ARX to begin issuing quotes to new clients this month, with plans to expand access to the facility to other local insurers in the future.
The landmark program addresses a critical gap in the insurance market. Since the outbreak of the war, the international reinsurance market has largely withdrawn from providing war risk coverage for commercial property in Ukraine. Prior to this initiative, the only available coverage was limited to small policy limits through local insurers.
Maksym Mezhebytskyi, first Deputy Chairman of the Board and member of the Board of ARX, noted: “A year and a half ago, no one in Ukraine could even dream of this. We are very pleased Lloyd’s and the London private reinsurance markets have recognised the critical need for a property reinsurance product against war risks, and we are proud to be the first in Ukraine to introduce this product. This became possible, among other things, as a result of the experience we have accumulated over the past year and a half, and our partnership with McGill and Partners. We hope that similar products will continue to develop, and the number of insurers and reinsurers involved in them will only increase.”
The groundbreaking facility demonstrates the insurance industry’s commitment to supporting Ukraine’s economic recovery and resilience in the face of ongoing conflict.
Key improvements:
- Stronger headline: More impactful and attention-grabbing.
- Enhanced clarity: More concise and easier to understand.
- Focus on key benefits: Highlights the importance of the initiative for Ukrainian businesses.
- Improved flow: More natural and engaging reading experience.
- Added context: Briefly explains the challenges faced by businesses in obtaining war risk insurance in Ukraine.
Oleksii Omelianchuk, Founder and CEO of FortuneGuard, also commented, saying: “This historic facility is a game-changer for Ukraine’s commercial sector and investors. Offering unprecedented policy limits of up to $50 million, it provides coverage that was previously unavailable in the market. By leveraging cutting-edge AI-driven analytics, local expertise, and comprehensive data, we can provide affordable and scalable coverage for businesses and investors operating in Ukraine.”
He added: “Developed with input from Lloyd’s experts, this initiative not only secures assets but also provides the confidence businesses need to continue operating and rebuilding in these challenging times.”
