Commercial real estate and investments will be insured against war risks in Ukraine

13 January 11:42

Insurance brokerage McGill and Partners and Ukrainian insurance company ARX, with the mediation of FortuneGuard, are launching a unique war risk insurance program for companies operating in Ukraine. This was reported by Reuters, according to Komersant ukrainskyi.

It is noted that this is the first initiative of its kind since the beginning of Russia’s full-scale military aggression against Ukraine in February 2022.

Reportedly, Ukrainian companies have faced difficulties in obtaining insurance since the outbreak of hostilities, as Western companies that provide insurance coverage have introduced exclusions for Ukraine.

Hamish Greenwood, head of McGill’s crisis management, commenting on the agreement, said that the company “has never believed it was fair to have a blanket exclusion for all of Ukraine because the risk in the west is not the same as the risk in the east.”

McGill said it had been working on this program for several months.

McGill’s cooperation with the Ukrainian insurance company ARX provides up to $50 million for each commercial real estate insurance policy with reinsurance from firms in London, including Lloyd’s of London syndicates.

The insurance covers threats from damage caused by drones, missiles and air defense debris. The insurance does not cover losses caused by cyber attacks, biological, nuclear, chemical weapons, looting, etc.

According to McGill, the insurance coverage will be available for facilities located more than 100 km (62 miles) from the front line.

FortuneGuard, an insurance technology company, will use official data on shells fired on the territory of Ukraine to assess the likelihood of war damage.

Seven London-based companies have reportedly already agreed to provide insurance coverage under the program.

Василевич Сергій
Editor