Lloyd’s and Aon in a new report have evaluated Russia president Vladimir Putin’s invasion of Ukraine and focused on the actions the insurance industry can take to support clients in building resilience.
The present report ‘The (re)insurance industry response’ is the second part of the analysis of the wide-ranging and interrelated risks that have emerged from the crisis in Ukraine. The first part of the analysis ‘Ukraine: A conflict that changed the world’ was published in July 2022.
A press release said Lloyd’s and Aon are committed to helping mitigate the increasingly complex risks globally and accelerating the delivery of innovative insurance solutions.
The new report said the insurance sector has already moved quickly to address many challenges facing clients, including the creation of a Ukraine grain facility to export stranded grain from Ukrainian ports and the role of established energy and nuclear insurance markets to underpin national energy security strategies.
The report outlined a range of practical solutions the sector might take – across seven major market forces of change – to advance customers risk protection offering in the face of seismic economic and geopolitical change.
The second part builds on the analysis and insights formed in its pre-ceding report by outlining a range of practical solutions the sector might take – across seven major market forces of change – to advance customers risk protection offering in the face of seismic economic and geopolitical change.
The report highlighted existing insurance solutions already available to address the important concerns for businesses, such as Lloyd’s landmark 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.
The report, however, noted that other areas such as supply chain and reputational risk are likely to require further action from the industry to help customers build greater resilience against the long-term effects of the conflict.
Lloyd’s CEO John Neal said, “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.”
Aon global chairman reinsurance solutions Dominic Christian said, “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.” M