EU Boosts Ukraine War Risk Insurance Facility to 150 Million Euros

Int’l Insurance Desk: The European Union is stepping up its support for war risk insurance in Ukraine by helping expand a key guarantee facility run by the European Bank for Reconstruction and Development and managed with Aon. The Ukraine Recovery and Reconstruction Guarantee Facility is growing from 110 million euros to 150 million euros, roughly 167 to 168 million dollars, according to reports from Bloomberg and Insurance Journal published this week.

The facility enables Ukrainian insurers to offer coverage against war related risks that commercial markets have largely avoided since the full scale invasion. Those local policies are then reinsured by MS Amlin in London, with the EBRD guarantee standing behind the arrangement. So far the program has supported more than 500 million euros in reinsurance capacity across nearly 10,000 policies covering cargo, vehicles and related logistics risks. Premiums collected have exceeded claims to date, and MS Amlin has not needed to draw on the guarantee funds, a sign that the structure is functioning on a commercial footing even in difficult conditions.

Demand has risen as Russian strikes on energy infrastructure, transport links and civilian targets have intensified. The expanded capacity will allow participating Ukrainian insurers to write more business and extend cover into new areas such as natural gas transportation and storage assets as well as goods held temporarily in warehouses. Two additional local insurers are joining the scheme, broadening the network of companies able to offer the protection.

Officials involved note that the original 110 million euro guarantee, backed by contributions from France, Norway, Switzerland, the United Kingdom and others, had been fully deployed. The extra European Union support through its Ukraine Investment Framework makes the increase possible. The program has already helped keep trade flowing and logistics operations moving by filling a gap that ordinary insurance markets could not address on their own.

As Ukraine’s broader insurance sector has recovered toward pre war premium levels, initiatives like this one are seen as practical tools for sustaining economic activity under fire. Whether the expanded facility will prove sufficient if attacks continue to escalate remains an open question, but for now it provides a concrete mechanism for sharing risk and keeping critical supply lines insured.