Marsh/Ascot suspend Ukraine marine covers on Russian treaty pull-out
Global broker Marsh and Lloyd’s re/insurer Ascot Group has suspended quoting marine insurance covers on grain shipments out of the Black Sea following word Rusia was pulling out of the Black Sea Treaty.
“We are pausing on quoting new shipments until we better understand the situation,” the head of cargo at Ascot Chris McGill said.
“Our intention remains to help with these exports and support our clients so we’re hopeful negotiations will be successful and we can re-commence quoting.”
Policies already issued still stand and any shipments that were quoted last week are valid for 7 days, McGill said. Requests for quotes had dropped off last week (October 24-28), he claimed, coinciding with news suggesting difficulties in clearance at the Bosporus straits in Turkey.
On Saturday, Russia announced it would suspend its participation in the UN-brokered Black Sea deal allowing grain transport via the Black Sea. The announcement followed what Russia claimed was a major drone attack on its fleet at Sevastopol on the Crimean Peninsula.
Marsh and Ascot had been an early mover to bring marine cover for shipping of Ukrainian grain and other food supplies when the treaty first enabled shipments in August.
Marsh, Ascot and other leading insurers that are part of the facility also agreed to extend it to clients of Lloyd’s of London registered brokers. The marine cargo and war facility provides up to $50 million in all-risks marine cargo and war coverage.
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