08.09.2023 13:09

Lloyd's is negotiating with the UN about insurance for the transportation of Ukrainian grain

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08.09.2023 13:09

Lloyd's of London is in talks with the United Nations over providing insurance cover for Ukrainian grain shipments if a new Black Sea corridor deal can be reached, its CEO John Neal told Reuters on Thursday.

"Are we happy and able to continue to provide insurances in the event that a corridor can be re-operated and can be re-established? The answer to that is yes," Neal told Reuters in an interview.

"We are in active discussions with the UN about how that might happen," Neal said, adding that those conversations included the possibility that cover may need to be structured differently than before.

Securing insurance cover is crucial for shipments leaving Ukraine.

"Absent UN intervention and UN clearance, we would not sanction the insurance," Neal said.

The Lloyd's market estimated loss, net of reinsurance, from the Ukraine conflict was 1.4 billion pounds ($1.74 billion), he added.

Neal added that the Lloyd’s market was also prepared to offer support to players active in the Ukrainian domestic insurance sector.

"We are having conversations with those on the ground – what can we do to help you and support you? Do you need reinsurance, do you need capacity?"

Insurer Beazley had covered ships in the grain corridor and also in the separate humanitarian channel that Ukraine has set up in recent weeks to enable ships stuck in Ukraine to leave, its CEO Adrian Cox told Reuters separately on Thursday.

"We're in that market to provide the insurance that's required for these vessels to start moving," Cox added.

IC UAC according to Reuters

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