The European Bank for Reconstruction and Development (EBRD), in collaboration with international insurance and reinsurance broker Aon, has announced the launch of the Ukraine Recovery and Reconstruction Guarantee Facility (URGF) with a €110 million funding. This mechanism will provide reinsurance support to international reinsurers and Ukrainian insurance companies to cover risks related to the ongoing war in Ukraine.
The EBRD and Aon are implementing a specialized program aimed at expanding the market for war-risk insurance in Ukraine. Under this initiative, the bank will offer support to international reinsurers through a guarantee covering losses associated with specific war-related risks.
First Deputy Prime Minister and Minister of Economy of Ukraine, Yulia Svyrydenko, expressed gratitude, emphasizing that the market had long awaited such a mechanism. She believes it will offer essential support to small and medium-sized businesses that have suffered significant losses due to the war. Additionally, the program will help attract investments into Ukraine’s economy and signal to the market that new insurance mechanisms can and should be implemented.
EBRD President Odile Renaud-Basso highlighted the importance of the guarantee in allowing private reinsurers to operate in Ukraine with coverage for war-related risks, thereby supporting the creation of a sustainable insurance market. This initiative is critical for providing businesses with confidence in protecting their assets, which will help unblock and accelerate investment in Ukraine.
The program is supported by France, the United Kingdom, Norway, and the EBRD TaiwanBusiness Technical Cooperation Fund. Additional guarantee support is expected from the European Union and Switzerland. Further donor contributions are anticipated to expand the EBRD guarantee in the future.
At its launch, the program will cover insurance for cargo, road transport, and rail rolling stock, with the possibility of extending coverage to other assets. The guarantee aims to insure goods and transport vehicles worth over €1 billion annually.
MS Amlin has joined as the first international partner, and Ukrainian insurers such as INGO, Colonnade, and UNIQA are expected to help spread war-risk insurance among businesses and SMEs.
The implementation of the program has been made possible through close cooperation between Ukraine's Ministry of Economy, the National Bank of Ukraine, the EBRD, and Aon. The program complements other initiatives offered by international organizations and the Ukrainian Government.
