The European Bank for Reconstruction and Development (EBRD), in partnership with international broker Aon, has launched the Ukraine Recovery and Reconstruction Guarantee Facility (URGF) to insure war risks. The total funding of the mechanism is EUR 110 million. This was reported by the Ministry of Economy of Ukraine.
A new level of insurance protection
The URGF mechanism is aimed at supporting the war risk insurance market in Ukraine. Under the programme, the EBRD will provide guarantees to international reinsurers covering losses associated with war risks.
Initially, the mechanism will cover insurance of cargo, road and rail transport, but may extend to other assets in the future. The annual volume of insured goods and vehicles is expected to exceed EUR 1 billion.
International cooperation
The first partners have already joined the programme, including the international insurance company MS Amlin and Ukrainian insurers INGO, Colonnade and UNIQA. The URGF is being implemented with the support of the governments of France, the United Kingdom, Norway and the EBRD TaiwanBusiness Technical Cooperation Fund. The European Union and Switzerland are also expected to join the programme.
Support for business and investment
Yulia Svyrydenko, First Vice Prime Minister and Minister of Economy of Ukraine, stressed that the new mechanism will provide important support to small and medium-sized businesses affected by the war.
“This mechanism will help attract investment in the Ukrainian economy and will signal to other market players that new insurance mechanisms can and should be implemented. The private sector is already demonstrating significant demand for such instruments,” Svyrydenko said.
The launch of the URGF is an important step towards creating the conditions necessary for Ukraine’s economic recovery in the wake of the war, as well as stimulating international investment in key sectors.
