First Deputy Prime Minister of Ukraine and Minister of Economy of Ukraine Yuliia Svyrydenko discussed with international insurers the implementation of the first projects on a mechanism to reduce the cost of shipping insurance in the territorial waters of Ukraine, as well as the development of similar mechanisms for other types of exports. This was the subject of a video call with Crispin Ellison, Senior Partner of Marsh McLennan, the world's largest risk management consultancy.
"Together with the insurance market, we are now implementing the first projects in terms of a mechanism to reduce the cost of shipping insurance in the territorial waters of Ukraine. This is of great importance to us, as it will contribute to the safety of maritime transport and increase the volume of Ukrainian exports. Ship insurance is one of the most complex projects involving dozens of stakeholders. This clearly demonstrates that the international insurance market is ready to work in Ukraine. Our further joint steps will be aimed at expanding the implementation of similar insurance instruments for other types of exports," said Yuliia Svyrydenko.
The new mechanism for insuring maritime transportation in Ukraine's territorial waters will reduce the cost of grain insurance by approximately 2.5 percentage points of the insurance tariff, which will allow grain traders to save about UAH 100-140 per tonne of cargo, as well as will bring additional UAH 4.0 billion to agricultural producers. These funds will be allocated to farmers both in the form of an increase in the purchase price and additional purchases.
The implementation of the maritime insurance mechanism will guarantee the safety of shipping, promote the stability of maritime transportation, and ensure the sustainable export of Ukrainian products through Ukrainian ports.
