McGill and Partners Unveils Innovative War Risk Reinsurance Facility for Ukraine
In a significant move to support businesses in Ukraine, McGill and Partners, a prominent independent global specialty insurance and reinsurance broker, has announced the launch of a unique war risk reinsurance facility designed specifically for commercial properties affected by the ongoing conflict. This pioneering initiative addresses the pressing insurance gap faced by companies operating in regions impacted by war, as highlighted by InsurTech Insights.
The Need for War Risk Coverage in Ukraine
The launch of this reinsurance facility arrives at a critical juncture as Ukraine strives to recover from the devastating effects of war. By providing a tailored solution, McGill and Partners aims to fill the void left by international reinsurance markets that have largely withdrawn from offering war risk coverage for Ukrainian commercial properties.
Innovative Use of AI-Driven Analytics
The newly established war risk reinsurance facility utilizes advanced AI-driven analytics developed by FortuneGuard, a member of the Lloyd’s Lab InsurTech community. This technology processes official data regarding projectiles fired into Ukraine, allowing underwriters to evaluate war damage risks with enhanced accuracy. The benefits of this approach include:
- More competitive premium pricing
- Improved risk management
- Increased accessibility to insurance for high-risk businesses
Coverage Details and Availability
The facility offers coverage of up to $50 million per risk, initially available for businesses situated more than 100 kilometers from the front line. Reinsurers will partner with ARX to commence issuing quotes to new clients, with plans for future expansion to other local insurers.
Support from Industry Leaders
Steve McGill CBE, Founder and CEO of McGill and Partners, emphasized the insurance industry’s vital role in aiding Ukraine’s economic recovery, stating: “The launch of this groundbreaking facility marks a significant milestone in supporting Ukraine’s economic recovery and resilience.”
He further noted that by leveraging AI and extensive data sets, the company has managed to adopt a more informed approach to risk presentation and underwriting, ultimately delivering scalable reinsurance capacity at accessible premiums.
Future Prospects
This initiative represents a crucial step in restoring adequate coverage that was previously limited through local insurers. According to Maksym Mezhebytskyi, the first Deputy Chairman of the Board and member of the Board of ARX, this development was unimaginable a year and a half ago. He expressed pride in being the first in Ukraine to introduce this product, highlighting the collaboration with McGill and Partners as instrumental in its success.
A Game-Changer for Investors
Oleksii Omelianchuk, Founder and CEO of FortuneGuard, described the new facility as a game-changer for Ukraine’s commercial sector and investors, providing unprecedented policy limits and affordable, scalable coverage. He added that this initiative not only secures assets but also instills confidence in businesses to continue operations and reconstruction efforts during these challenging times.
For more information about insurance options and resources in Ukraine, visit ARX.
