McGill and Partners, an independent global specialty insurance and reinsurance broker, has unveiled a war risk reinsurance facility for commercial properties, offering coverage up to $50 million per risk for assets located more than 100 kilometers from the front line.
The facility, developed in partnership with FortuneGuard, a Lloyd's Lab insurtech, employs AI-powered technology to analyze war damage risks using official data on projectiles fired into Ukraine. This technological approach enables more precise risk evaluation and affordable premium calculations.
Working alongside Ukrainian insurer ARX, this initiative represents an advancement from the previous maximum coverage limit of $500,000 through local insurers. The facility will begin issuing quotes to new clients this month, with plans to expand access to additional local insurers.
“By harnessing the power of AI and comprehensive data sets, we have been able to take a more informed approach to presenting and underwriting risk. This approach has enabled us to deliver scalable reinsurance capacity at an accessible premium, adding critical coverage for businesses that were largely unprotected," Steve McGill CBE, Founder and CEO of McGill and Partners, said in a press release.
FortuneGuard's CEO, Oleksii Omelianchuk, highlighted the transformative nature of this development: "This historic facility is a game-changer for Ukraine's commercial sector and investors. By leveraging cutting-edge AI-driven analytics, local expertise, and comprehensive data, we can provide affordable and scalable coverage".
ARX's first deputy chairman, Maksym Mezhebytskyi, added: "A year and a half ago, no one in Ukraine could even dream of this. We are very pleased Lloyd's and the London private reinsurance markets have recognised the critical need for a property reinsurance product against war risks".
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