EBRD expands war risk insurance for Ukrainian business
The European Bank for Reconstruction and Development (EBRD), together with the European Union and international company Aon, increased the volume of the war risk insurance guarantee program in Ukraine from 110 million to 150 million euros. The mechanism will now also cover warehouse inventories and certain gas sector assets.
This was announced on October 13 by the EBRD and Aon in a joint statement on the expansion of the Ukraine Recovery and Reconstruction Guarantee Facility (URGF).
The previous program volume of 110 million euros has already been fully utilized to secure insurance capacity for Ukrainian companies. Therefore, the EBRD decided to increase the guarantee limit by 40 million euros so that more enterprises can receive protection from war-related losses.
Additional guarantees will be supported by the European Union through the Ukraine Investment Framework - an investment assistance mechanism for Ukraine.
Insurance to be extended to warehouses and gas assets
One of the main changes was the expansion of the list of property and operations that can be covered.
Now the program provides for the possibility of insuring goods temporarily stored in warehouses, as well as risks associated with the transportation and storage of gas sector assets.
Previously, the mechanism mainly covered cargo transported within Ukraine, damage to motor vehicles, and railway rolling stock.
The expansion is especially relevant amid intensifying Russian attacks on energy, transport, and logistics infrastructure. Damage to warehouses, vehicles, and other commercial assets creates risks of significant financial losses for enterprises.
The EBRD notes that affordable war risk insurance is necessary to maintain economic activity and investment even under constant threat of shelling.
Two more insurance companies to join the program
The expansion of the guarantee mechanism will allow an increase in the number of Ukrainian insurers offering relevant policies.
Currently, three companies participate in URGF:
- "INHO";
- Colonnade;
- UNIQA.
They will be joined by "Ukrainian Insurance Group" (USG), owned by the international Vienna Insurance Group, and "Universalna" from the Canadian Fairfax Financial Group.
Thus, the number of Ukrainian insurance companies participating in the program will increase to five.
CEO of "Universalna" Oleksiy Muzychko emphasized that the expansion of insurance capacity is particularly important for the agricultural sector, which needs protection of cargo and property to continue operations during the war.
At the same time, participation in the program does not mean automatic insurance of all enterprise assets. Specific coverage will depend on the terms of policies offered by insurance companies.
Over 500 million euros in insurance coverage already provided under the program
According to the EBRD, since the start of URGF, guarantees of 110 million euros have helped secure over 500 million euros in reinsurance coverage for goods and vehicles.
In total, almost 10 thousand insurance policies have been issued under the mechanism.
At the same time, the amount of paid insurance premiums exceeded the volume of reported losses. International reinsurance company MS Amlin, which participates in the program, has not yet requested payments under EBRD guarantees.
The bank views these results as confirmation that the war risk insurance market in Ukraine can operate on a commercial basis with international support.
It is important that 150 million euros is the volume of the guarantee mechanism, not the amount of direct compensation to enterprises. Guarantees help the international reinsurer accept risks from Ukrainian insurance companies, which can thus enter into more contracts with businesses.
Aon is responsible for managing the program, and MS Amlin provides reinsurance protection.
The initial guarantee mechanism received donor support from France, Norway, Switzerland, the United Kingdom, and the TaiwanBusiness-EBRD Technical Cooperation Fund. The new expansion is supported by the European Union.
Insurance should support investment during the war
The URGF program was created to restore access of Ukrainian enterprises to war risk insurance after a significant portion of international reinsurers reduced their presence in the Ukrainian market due to the full-scale Russian invasion.
Without international reinsurance, Ukrainian companies have limited ability to independently cover potentially large losses from missile strikes, drone attacks, and other war risks.
The first insurance policies with URGF support began to be offered by Ukrainian insurers in 2025. Among the first users were agricultural enterprises whose activities depend on safe transportation of products.
EBRD President Odile Renaud-Basso noted that the program helps Ukrainian companies manage risks and continue operations during the war.
According to the bank, since the beginning of Russia's full-scale invasion, it has directed about 11 billion euros to Ukraine, including a record 2.9 billion euros in 2025.
The expansion of war risk insurance is expected to complement the EBRD's credit and investment programs aimed at preserving the work of Ukrainian business and recovery of the economy.
Sources: European Bank for Reconstruction and Development, Aon