Companies operating in Ukraine can now fully utilize the new war risk insurance tool created by the European Bank for Reconstruction and Development (EBRD) in collaboration with global professional services provider Aon.
According to a press release from the EBRD, after signing reinsurance agreements with international reinsurance company MS Amlin, Ukrainian insurance companies "INGO," Colonnade, and UNIQA have started offering war risk insurance policies for ground cargo transportation, vehicles, and railway rolling stock.
The EBRD provides a guarantee to international reinsurers under the Ukraine Recovery Guarantee Programme (URGF), which helps cover war-related risks insured by Ukrainian companies, the EBRD clarified.
In the first few weeks after the programme's launch, insurance policies worth over 5 million euros were issued, indicating strong demand for war risk insurance in Ukraine. The policies were purchased by companies in the agricultural sector, highlighting the importance of guarantees for the trade of critical goods.
The EBRD's programme operates as an open platform, available for various reinsurance and insurance companies specializing in war risk insurance. Interested end-users can obtain insurance policies through local brokers or directly from Ukrainian insurance companies using the EBRD guarantee.
At full capacity, the EBRD’s guarantee could facilitate insurance cover for up to €1 billion worth of goods and vehicles in transit each year through the ability to recycle capital from generally short-term insurance policies, providing coverage worth a multiple of the guarantee amount. This will make war risk insurance more accessible, stimulate business activity and economic growth, and help to lay the foundations for Ukraine’s recovery.
The facility is backed by France, the United Kingdom, Norway and the TaiwanBusiness-EBRD Technical Cooperation Fund. Additional donor support has been pledged by the European Union and Switzerland. Further donor contributions will enable the EBRD’s guarantee to grow in size over time.
Since February 2022, the EBRD has deployed more than €6.2 billion in Ukraine, focusing on support for energy security, vital infrastructure, food security, trade and the private sector, in addition to key policy reforms. In 2023, the EBRD’s Board of Governors approved a capital increase of €4 billion to support investment in Ukraine, both in wartime and during the subsequent reconstruction phase.
