The European Bank for Reconstruction and Development (EBRD), in partnership with global insurance and reinsurance broker Aon, has announced the launch of the EUR 110 million Ukraine Recovery Guarantee Facility (URGF).
This initiative introduces a specialised programme to expand the war risk insurance market in Ukraine. Under the programme, the EBRD will provide support to international reinsurers through a guarantee covering losses associated with specific war-related risks.
The mechanism aims to provide critical support to small and medium-sized enterprises (SMEs) that have suffered significant losses as a result of the war. It is expected to attract investment into the Ukrainian economy and signal to other market players that innovative insurance solutions can and should be implemented, given the apparent demand from the private sector.
The EBRD’s guarantee will enable private reinsurers to re-enter the Ukrainian war risk insurance market, thereby encouraging the development of a resilient insurance sector. This is essential to ensure that businesses feel confident in protecting their assets, which in turn will unlock and accelerate investment in Ukraine.
The programme will initially focus on insuring cargo, motor vehicles and railway rolling stock, with plans to extend coverage to other assets. The guarantee is expected to support the insurance of over €1 billion worth of goods and vehicles annually.
MS Amlin is the first international partner to join the programme. Participating Ukrainian insurers include INGO, Colonnade and UNIQA, which will use their networks to promote war risk insurance to businesses and SMEs.
The implementation of the programme is the result of close cooperation between the Ministry of Economy of Ukraine, the National Bank of Ukraine, the EBRD and Aon. It complements existing programmes offered by other international organisations and the Government of Ukraine.
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