"We are expecting to see the announcement from brokers and underwriters of some products that will support this in the next few days."
- Bruce Neil Carnegie, Lloyd’s of London chair
On the 22nd July 2022, Russia and Ukraine signed a deal, brokered by Turkey and the United Nations, to reopen grain and fertilizer exports that have been blocked by war in a bid to ease the international food crisis.
Since then, Lloyd’s of London chair Bruce Neil Carnegie has said that “we are expecting to see the announcement from brokers and underwriters of some products that will support this in the next few days.”
Following a Russian missile attack on the Ukrainian port of Odesa, a day after the grain deal was signed, risks remain high.
“It is crucial that the agreement holds,” Carnegie-Brown said.
“A number of mines have already been planted in the Black Sea – insurers can get their arms around that but they wouldn’t be able to get their arms around serious breaches of the agreement.”
Premiums to go into the broader Black Sea area have risen from 0.25% to 5% of the value of the ship since the invasion.
Insurers, including Lancashire, have already expressed an interest in underwriting ships passing through the grain corridor, provided there are arrangements for international navy escorts and a clear strategy to deal with sea mines.
Alex Maloney, Lancashire chief executive said that “[Lancashire] are not risk averse, it’s definitely something we are interested in.”
