Ukraine ‘protection gaps’ must be addressed

Following analysis of the wide-ranging and interrelated risks that have emerged from the crisis in “Ukraine: A conflict that changed the world” - today Lloyd’s and Aon publish: ‘The (re)insurance industry response’.

This second report outlines a range of practical solutions the sector might take - across seven key market forces of change - to advance customers’ risk protection offering in the face of seismic economic and geopolitical change.

The report highlights existing insurance solutions already available to address key 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.

However, it notes 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.

Recognising this call to action for the industry, Lloyd’s and Aon have agreed to establish a forum which will provide an opportunity to support the commercialisation of new solutions that address emerging customer needs.

This initiative will combine the unique convening power of Lloyd’s with Aon’s expertise and customer insight in order to build on the key learnings and outcomes of both reports.

Crisis solutions

John Neal, chief executive 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, 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.

“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.

“We seek to be at the forefront of product innovation to help close protection gaps we have seen emerge over the last several months. We hope the insights from this report will lead the way for greater collaboration across our industry to help address the urgency of unmet client needs.’