22 Lloyd’s Lab Impact Report 23 Lloyd’s market innovation beyond the LabAscot understood that London was the only international insurance market that would be able to consider this sort of challenging risk and set out to work with the teams at Lloyd’s to create a new joint Lloyd’s Lab supports the market’s innovation, but the market’s appetite facility (brokered by Marsh and with Ascot as lead and drive for innovation existed long before Lloyd’s Lab – as exempli昀椀ed underwriter) that could o昀昀er cover for grain moving in and out of Ukraine. by the Ukraine grain corridor insurance. The innovation was not technological, but 昀椀nding a way to tackle a societal challenge. The Ascot team was able to get shippers and ship owners covered and onboarded in weeks rather than months by developing a simpli昀椀ed process to buy insurance. They also partnered with Insurwave to connect the market to live risk exposure data and increase speed to cover through automation. The Ukrainian con昀氀ict has caused hardship and Lloyd’s played a critical part in the structuring of this su昀昀ering to millions, from those who were forced to vital initiative because our licensing system allowed become refugees, to the people who remain in the path multiple insurers to share the risk, while the London of the con昀氀ict. However, a global food crisis has also market brings together a unique group of large been narrowly averted. carriers with the depth of skills and appetite to take part in this type of forward looking facility. “ The ‘AsOne’ Ukrainian grain facility is a McGill commented that, “Lloyd’s has a strong perfect example of how the Lloyd’s market regulatory and compliance team which is consistently on top of how we need to apply issues like sanctions, uniquely brings together skilled teams that and this gave us the con昀椀dence that we were not are able to mobilise at speed and facilitate a going to walk into a sanctions or regulatory breach while putting this product together. Only in the bold solution in a time of crisis."London market could we have launched with such speed, and the recognised global brand of Lloyd’s Chris McGill - Class Underwriter, Head of Cargo, Ascot meant that shipowners felt con昀椀dent in using the facility from day one.” Ukraine grows 10% of the world’s wheat, and 40% of the World Food Programme’s wheat supplies. Much of this is exported to Africa – a region which is already An added factor for those buying the policy is the dangerously near the margins on food shortages blue-chip record that Lloyd’s has for paying claims, because of its extreme climate and harsh economics. which gives buyers security that they will be paid out 100% as expected in the event of a cargo loss. When Russia blockaded ships from leaving Ukrainian ports in February 2022, there was a real and immediate Over 100 ships, carrying more than 2.3 million tonnes risk that the July harvest from the Ukraine would not be of grain have now left Ukraine*, saving many people able to be shipped to Africa, and that as a result, many from certain food shortages, and getting the World millions of people would face famine this year. The UN Food Programme moving once again. It is believed acted decisively and was eventually able to work with that many cargo ship owners who were cautious of Russia and Ukraine to broker a deal that would allow trading into and out of the region have begun to work cargo ships to bring grain through the contested these routes again because of the con昀椀dence that a waters. However, for shipowners to be willing to carry globally recognised insurance policy gives them. cargos to and from the region, there needed to be an available insurance cover for the cargos. Otherwise the Everyone at Ascot, Marsh, Lloyd’s and from the risk was perceived to be too high. following participants in the facility is proud of this example of how Lloyd’s can ful昀椀l its purpose: sharing risk to create a braver world. *Source: UN Joint Coordination Centre. As at September 9th 2022 © Lloyd’s