The insurance industry must help customers build resilience against the impacts of the Russian invasion Ukraine, according to new research from Lloyd’s and Aon.
The two firms have agreed to to establish an innovation forum to help support the commercialisation of new solutions to emerging customer needs following nearly eight months of warfare in the country.
This follows the publication of the second report from Lloyd’s evaluating the crisis following Russia’s invasion in February, and focuses on the actions the insurance industry can take to support clients in building resilience.
The report suggests supply chain and reputation risks are likely to require further action from the industry to help customers build greater resilience against the long-term effects of the conflict.
This includes the creation of an Ukraine grain facility to export stranded grain from Ukrainian ports and the role of established energy and nuclear insurance markets to underpin national energy security strategies.
It also highlights existing insurance solutions already available to address key concerns for businesses, such as Lloyd’s 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.
John Neal, chief executive Officer 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.
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.