The EBRD and Aon launched a 110 million euro war risk insurance program in Ukraine

The European Bank for Reconstruction and Development (EBRD) together with international insurance and reinsurance broker Aon have announced the launch of the Ukraine Renewal and Reconstruction Guarantee Facility (URGF) worth EUR 110 million. This facility will provide reinsurance support to international reinsurers and Ukrainian insurance companies to cover risks related to the war in Ukraine, the press service of the Ministry of Economy reports .

The program will initially cover cargo, motor vehicle and rail rolling stock insurance, with the possibility of expanding to other assets. The guarantee is expected to insure goods and vehicles worth over €1 billion annually.

Aon notes that Russia's full-scale invasion of Ukraine has resulted in a significant reduction in reinsurance capacity available to the market as international reinsurers have withdrawn from Ukraine. This has significantly limited the ability of local insurers to offer commercial war risk insurance products.

"Aon's unwavering commitment to Ukraine motivates our company to continue to find new opportunities for businesses to invest in the country during the war. This innovative mechanism in cooperation with the EBRD further enhances the stability of the insurance market in Ukraine and strengthens the foundation for economic resilience and growth," commented Greg Case, CEO of Aon.

The facility is supported by France, the United Kingdom, Norway and the EBRD TaiwanBusiness Technical Cooperation Fund. Additional guarantee support is planned from the European Union and Switzerland. Further donor contributions will help expand the EBRD guarantee in the future.

The global reinsurer MS Amlin has already joined the program as a partner, as well as Ukrainian insurance companies INGO, Colonnade, and UNIQA, which will distribute war risk insurance among medium and small businesses through their networks.

In particular, INGO will be able to operate with a coverage of 50 million euros, which is the largest limit among insurers in Ukraine. The company will be able to provide insurance coverage of 2 million euros for one insured event and 5 million for all insured events for one insured person, the company said in a statement.

"This mechanism will provide much-needed support to small and medium-sized enterprises that have suffered significant losses due to the war. The market has been waiting for it for a long time," confirmed Economy Minister Yulia Svyrydenko .

The program is designed to complement programs offered by other international organizations and the Government of Ukraine.

Corrected. We have changed the previous headline of the news "International insurer Aon enters the war risk insurance market in Ukraine" as incorrect, since within the framework of the Guarantee Mechanism for the Renewal and Reconstruction of Ukraine (URGF), Aon will not provide war risk insurance services in Ukraine. Aon contributed to the emergence of this program and acts as a co-organizer. Ukrainian insurers INGO, Colonnade and UNIQA will implement and implement insurance coverage in Ukraine. According to Ukrainian legislation, insurance services can only be provided by financial institutions registered in Ukraine and holding appropriate licenses. LIGA.net apologizes for the incorrect information.

• On November 26, 2024, ECA insured a second investment loan against war risks for a pasta manufacturer.