The pair will be establishing an innovation forum 

Lloyd’s of London and Aon are calling on the insurance industry to help build customer resilience amid the ongoing Russia-Ukraine war in a joint report, published today (13 October 2022).

The report – entitled Ukraine: A Conflict that Changed the World – is the second released by Lloyd’s and Aon on this topic and builds on insights from the inaugural report by outlining practical solutions the sector could take to advance customer resilience across seven key markets.

The report highlighted Lloyd’s of London’s landmark facility to insure crucial shipments of grain out of Ukraine as a key example of the way in which the insurance sector could protect consumers.

It also noted the role of established energy and nuclear insurance markets in underpinning energy security strategies.

Lloyd’s and Aon have agreed to establish an innovation forum to provide an opportunity to support the commercialisation of new solutions that address emerging customer needs.

John Neal, chief executive of Lloyd’s, said: ”The type of collaboration shown in this report between Aon and Lloyd’s demonstrates the true value proposition of insurance – the sharing of risk between many to protect the misfortunes of the few.

“Lloyd’s occupies a unique position within the industry, bringing people together to drive innovative, sustainable insurance solutions at times of global crisis, and there is no greater need to fulfil this commitment than during the economic and humanitarian crisis we see today.

“Lloyd’s will continue to deploy its expertise and resources to help businesses respond to the consequences of the conflict, sharing risk to create a braver world.”

Seven key challenges are affecting businesses, including:

  • Cyber – growing threat due to geopolitical tensions
  • Supply chain – disruption and cost pressures from transportation challenges, commodity and raw materials shortages and trade wars
  • Food security – production challenges and export restrictions contributing to food shortages and price rises
  • Climate transition – implications of energy security on net zero commitments
  • Energy security – ramifications of restricted oil and gas supply from Russia
  • ESG – businesses’ ESG investment response and the impact on governance structures
  • Public sentiment – rising public pressures and reputational risk for governments and private sector, driving policy and business responses

Closing protection gaps

Dominic Christian, global chairman of reinsurance solutions at Aon, said: “The tangible impacts of the Ukraine conflict are evident across the world and across industries.

“Although the insurance market has reacted quickly and effectively to support policyholders, the crisis has exposed gaps that show we must move further and faster.

“A focus on developing innovative products and solutions is essential to ensure our industry plays its critical role helping organisations navigate an increasingly volatile risk landscape and make better decisions.

“We seek to be at the forefront of product innovation to help close protection gaps we have seen emerge over the last several months. We hope the insights from this report will lead the way for greater collaboration across our industry to help address the urgency of unmet client needs.’