AON, Lloyd’s in insurance deal with VIG for Ukraine support
Lloyd’s of London and AON, in partnership with Vienna Insurance Group (VIG), will facilitate foreign insurance and reinsurance capacity to bolster Ukraine’s economic durability amid its reconstruction efforts.
Bolstering a partnership
The announcement comes as part of the UK-Ukraine Private Finance Partnership and will see both AON and Lloyd’s deliver fast-track access to reserve foreign insurance and reinsurance capacity.
This will help bolster companies operating in Ukraine and Ukrainian companies operating internationally, as they look to sure up manufacturing and construction risk exposure.
In their first step of this pledge, AON and Lloyd’s have partnered with one of the largest insurers operating in Ukraine, VIG, providing it with treaty and facultative insurance and reinsurance.
This will increase VIG’s capacity for local and international clients requiring covering for construction and manufacturing needs.
Dominic Christian, Global Chairman of Reinsurance Solutions at AON hails the latest partnership commitment: “This unique commitment from Lloyd's, VIG and AON brings together the insurance industry’s proven expertise in innovative risk management and capital solutions, and so with urgency and energy we will help to restore social well-being to citizens, communities and corporations in Ukraine.”
The support being offered to Ukraine will help bolster an insurance industry that continued to function despite the war, with over €1bn (US$1.1bn) of insurance premiums written in 2022.
Despite recent calls, the insurance capabilities offered to Ukrainian insurers will not include war coverage for those directly affected.
Supporting Ukraine 'a moral commitment'
VIG Managing Board member Peter Höfinger says it is a moral commitment to support Ukrainian companies in the reconstruction process and that the move is “in line with our clearly pursued long-term strategy in our markets”.
He notes: “The Central and Eastern European region is our home market and we have been present in Ukraine since 2004. With this partnership, we are pleased to be able to use the international capacities of Lloyd’s and Aon and to provide our local expertise in the Ukrainian insurance business.”
Lloyd’s CEO, John Neal adds: “Lloyd’s is committed to supporting the reconstruction of Ukraine through this new collaboration with Aon and VIG.
“By ensuring the country’s insurance market has the necessary capital to lead on insurance solutions for its customers, backed by the financial might of the international (re)insurance industry, we can help strengthen Ukraine’s economic resilience as it recovers and rebuilds.”
