ARX Launches New War Risk Insurance with FortuneGuard and McGill and Partners
In a groundbreaking move, ARX, Ukraine’s premier insurance company and a part of the esteemed Canadian Fairfax Financial Holdings group, has introduced war risk insurance for commercial real estate and investments in Ukraine. This innovative product offers coverage of up to $50 million per risk, setting a new standard in the industry.
Revolutionizing Insurance Coverage for Enterprises in Ukraine
Traditionally, insurance in Ukraine has focused on protecting mobile assets and small businesses, leaving medium to large enterprises and investors with limited options to safeguard their assets. However, with the launch of ARX’s war risk insurance, businesses of all sizes can now access comprehensive coverage against risks associated with war and conflict.
ARX’s collaboration with insurtech participant FortuneGuard and top Lloyd’s broker McGill and Partners has paved the way for this transformative insurance product. By leveraging AI-based analytics to assess risks, including factors like attack history, damage, and proximity to critical infrastructure, ARX ensures that its clients receive tailored and effective coverage.
Empowering Local Businesses with Affordable Protection
Hamish Greenwood, Partner and Head of Crisis Management at McGill and Partners, emphasized the importance of ARX’s new product in making war risk insurance accessible to local businesses. Previously, only multinational corporations could afford such comprehensive coverage, leaving local businesses vulnerable to unforeseen risks. Now, thanks to ARX’s initiative, businesses in Ukraine can affordably protect their assets and investments against war-related damages.
As Ukraine navigates the complexities of war insurance, initiatives like the European Bank for Reconstruction and Development’s bank guarantee and the proposed Law of Ukraine “On the System of Military Risk Insurance” are crucial steps towards creating a robust insurance framework for the country. These efforts aim to provide comprehensive coverage for various sectors, including internal domestic cargo, motor vehicle damage, and railway rolling stock, ensuring the resilience of Ukraine’s economy in the face of conflict.
Looking Towards a Secure Future
While the introduction of war risk insurance marks a significant milestone in Ukraine’s insurance landscape, challenges remain. Global insurers must reconsider their blanket exclusions of Ukraine’s market to support the country’s vital industries. Additionally, ongoing negotiations for coverage of civilian flights from Ukraine highlight the need for comprehensive risk management solutions in the face of evolving security threats.
As Ukraine continues to strengthen its insurance framework, local businesses, investors, and enterprises can look towards a more secure future with ARX’s innovative war risk insurance. By bridging the gap in coverage and empowering businesses to protect their assets, ARX is reshaping the insurance landscape in Ukraine and setting new standards for risk management in times of uncertainty.
