London market may spearhead facility to cover Black Sea grain transport

London market insurers are crafting a market facility to grease coverage for Black Sea merchant vessels carrying grain as part of a recent Russia-Ukraine deal enabling wartime food transport.

“With the world watching, this is clearly an opportunity for the London market” to “expedite” the reopening of transport,” secretary of the  LMA's Joint War Committee Neil Roberts (pictured) wrote in a circular to members, with constant caveat for “appropriate risk assessment.”

The circular sites an unspecified and unsourced proposal that “a market facility could be created to specifically provide insurance for these purposes,” the circular stated.  Interested underwriters are asked to contact the  LMA, the  IUA or  LIIBA for initial support.

“The proposed specific facility is not intended to prevent other offers of insurance under existing facilities or by way of open market placement should underwriters decide to offer separate solutions as well,” committee secretary Neil Roberts wrote.

Comments follow word July 22 that Russia and Ukraine had signed an agreement to allow transport of grain trapped by Black Sea blockade.

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