Insurance rates in the commercial transportation market of the Ukrainian grain corridor have been halved

Thanks to the Unity insurance instrument, insurance rates in the commercial market of transportation by Ukrainian sea have been halved, while the rate for agricultural insurance is currently 0.75%. This was reported by the Ministry of Economy of Ukraine.

“Extending insurance to all non-military cargoes, such as containerized cargo, iron ore, and steel, is extremely important for Ukraine. Especially given the increased opportunities for exporting metallurgical products, as this sector has been severely affected by the full-scale invasion. Also, ship insurance can support efforts to increase exports of all non-resource products. Strengthening the processing industry and developing non-resource exports are priorities for the government to strengthen economic resilience,” said Yulia Svyrydenko, First Vice Prime Minister and Minister of Economy of Ukraine.

The Unity program of affordable ship insurance, implemented by Marsh McLennan and Lloyd’s of London in cooperation with the Ukrainian government, is being significantly expanded. The program will cover not only the marine transportation of grain and other important foodstuffs, but also vessels carrying all non-military cargoes, such as iron ore, steel and containerized cargo.

“Marsh McLennan supports Ukraine, helping it to attract global investment to rebuild the country and restore its economy. We are pleased to expand our public-private partnership with the Ukrainian government. The solution will provide exporters with lower premiums for transporting a wider range of goods along the Black Sea trade routes and great economic benefits for Ukraine,” said Marsh McLennan President and CEO John Doyle.

It is emphasized that all international brokers have access to the Unity insurance instrument, which can be used by ship owners and Ukrainian exporters. The program is designed to provide affordable insurance against military risks of grain and other important food products worldwide and was launched in November 2023. Unity offers hull insurance and separate protection and indemnity (P&I) against war risks at significantly reduced premiums compared to standard market prices. In addition to grain, Unity now provides coverage for Ukraine’s other export products, including iron ore, steel, electrical equipment and animal feed.

As previously reported, Unity Facility insurance in the Ukrainian corridor has been expanded to cover all cargoes.

Tags: Ukraine, insurance, Black Sea grain corridor