Aon and Marsh McLennan's Call for Support to Ukraine's Economy

Author: Addison Perry Updated: 09-08-2024 09:46 PM

Aon and Marsh McLennan's Call for Support to Ukraine's Economy

Aon and Marsh McLennan have recently made a passionate appeal to the (re)insurance industry, urging them to leverage their resources and expertise to bolster Ukraine’s resilience. The firms recognize the immense challenges Ukraine is facing and stress the importance of catalyzing economic growth. This support is especially vital in the context of rebuilding the nation’s infrastructure and strengthening its foundation for a post-conflict economy.

Importance of Comprehensive Risk Assessment

Since the initiation of hostilities, many global reinsurers have grouped risks from Ukraine, Russia, and Belarus together. This oversight has resulted in significant exclusions from reinsurance contracts which limit capital availability for Ukraine, obstructing pathways for economic growth and stability. Aon and Marsh McLennan emphasize that treating Ukraine the same as its neighbors does not reflect the true diversity of risk present within the country, where efforts are being made to align more closely with Western economies.

Leadership Statements

“Marsh McLennan is committed to supporting Ukraine in attracting global investment for its recovery,” stated John Doyle, the firm’s President and CEO. He emphasized the critical role the global insurance community must take to eliminate blanket exclusions for Ukraine in order to promote reconstruction efforts.

Greg Case, CEO of Aon, echoed these sentiments, noting, “Insurance capital is essential for rebuilding Ukraine’s vital sectors, including health care and agriculture. We urge the industry to carefully assess Ukraine’s unique risks and enhance public-private partnerships that can aid in rebuilding.”

Collaborative Efforts for Economic Recovery

Aon and Marsh McLennan are actively engaged with various governmental bodies and international organizations to support Ukraine through this difficult period. Their collaborative efforts focus on accelerating investment and aiding the economic recovery of a country under persistent threat.

Public-Private Partnerships

In March, Marsh McLennan took significant steps by announcing the expansion of a public-private partnership with Ukraine to ensure comprehensive coverage for all shipping operations to and from its ports. This initiative followed the establishment of a groundbreaking war risk data platform that aims to provide insurers and investors with detailed insights on the effects of the conflict and the associated risks.

Additionally, in June, Aon joined forces with the U.S. International Development Finance Corporation to launch an innovative insurance program specifically tailored to support war risk policies for businesses operating within Ukraine. This crucial step is intended to promote economic recovery, particularly within the health care and agriculture sectors.

Data-Driven Insights for Better Decision Making

The firms highlight that arbitrary exclusions for Ukraine can generate confusion regarding the different levels of risk present in various regions of the country. Aon and Marsh McLennan believe that utilizing data and analytical tools can help refine understanding of where insurance capital can best facilitate Ukraine’s reconstruction as well as fuel further economic growth.

About Marsh McLennan

Marsh McLennan is a leading global entity in risk management, strategy, and human capital, serving clients across 130 countries. With an annual revenue exceeding $23 billion and a workforce of over 85,000, they strive to empower organizations with insights to navigate challenges effectively.

About Aon

Aon plc is dedicated to helping clients manage risk and enhance their potential through actionable insights and comprehensive solutions. Their expertise spans over 120 countries, providing clarity and confidence to businesses looking to protect and develop their workforce and operations.

Frequently Asked Questions

What is the main objective of Aon and Marsh McLennan's appeal?

They aim to encourage the (re)insurance industry to support Ukraine's economic recovery by reviewing their blanket exclusions and providing the necessary capital and resources.

Why are blanket exclusions a concern for Ukraine?

Blanket exclusions can prevent vital insurance capital from flowing into Ukraine, which is essential for economic growth and rebuilding its infrastructure.

How are Marsh McLennan and Aon supporting Ukraine?

They are collaborating with various governments and organizations to promote global investment and support initiatives that will aid Ukraine's recovery.

What initiatives have been launched to bolster Ukraine's economy?

Marsh McLennan expanded its public-private partnership to cover shipping operations, while Aon created an insurance program to support war risk policies for businesses in Ukraine.

What role does data play in addressing the challenges faced by Ukraine?

Data and analytics help identify specific risks in various regions, guiding insurers on where and how to invest in Ukraine's recovery effectively.

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Aon and Marsh McLennan's Call for Support to Ukraine's Economy