The industry has already made moves to address challenges driven by the conflict, including the creation of a Ukrainian grain facility to export stranded grain from Ukrainian ports. The report also noted the role of established energy and nuclear insurance markets in underpinning complex national security strategies.
However, the report found that other areas, such as supply chain and reputational risk, are likely to require further efforts by the insurance industry to help their customers build resilience to the long-term effects of the war.
With that in mind, Lloyd’s and Aon have agreed to establish an innovation forum to support the commercialization of new strategies to address emerging customer needs, the companies 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,” said Lloyd’s CEO John Neal. “Lloyd’s occupies a unique position within the industry, bringing people together to drive innovative, sustainable insurance solutions at times of global crisis – and there is no greater need to fulfill this commitment than during the economic and humanitarian crisis we see today. Lloyd’s will continue to deploy its expertise and resources to help businesses respond to the consequences of the conflict, sharing risk to create a braver world.”
Read next: Ukraine war could have long-term business impacts – Aon and Lloyd’s report
“The tangible impacts of the Ukraine conflict are evident across the world and across industries,” said Dominic Christian, global chairman of reinsurance solutions at Aon. “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.”
Christian said that “a focus on developing innovative products and solutions” was vital to ensure that the insurance sector could help organizations “navigate an increasingly volatile risk landscape and make better decisions.”
“We seek to be at the forefront of product innovation to help close protection gaps we have seen emerge over the last several months,” he said. “We hope the insights from this report will lead the way for greater collaboration across our industry to help address the urgency of unmet client needs.”