Insurer Hiscox has committed to a Lloyd’s of London backed insurance initiative to provide cover for Ukrainian grain shipments.
The move was revealed by Hiscox chief executive Aki Hussain in comments reported by Reuters.
“We have committed our support to the Lloyd’s market-led initiative,” Hussain told the news agency. “We are very supportive of it.”
The Lloyd’s facility is currently under development. It is understood to be separate from a $50m cargo and war risks policy for Ukraine grain shipments recently launched by broker Marsh and underwriter Ascot.
The Marsh and Ascot policy essentially provides cargo cover and, as yet, there is no commercial policy available covering hull and machinery and shipowner liabilities for the trade.
However, war risk underwriters tell TradeWinds that commercial cover will be available for all liabilities once more shipments are underway, and the security provisions and risks become clearer.
Hussain’s comments come after Hiscox reported a group $107.4m pre-tax loss for the six months to the end of June 2022, compared with a $133.4m profit in the same period last year.
Premium in its cargo, marine hull, energy, offshore and marine liability business was up 4% to $181m in the six-month period.
It suffered a $48m loss from the conflict in Ukraine.