European bankers will insure war risks in Ukraine

The European Bank for Reconstruction and Development announced the launch of the Guarantee Mechanism for the Recovery and Reconstruction of Ukraine in the amount of 110 million euros. The international financial institution's partner in the project is the international insurance and reinsurance broker Aon.

Currently, this mechanism is planned to provide reinsurance support to international reinsurers and Ukrainian insurance companies to cover risks related to the war in Ukraine. It is implemented with the support of France, Great Britain, Norway and the TaiwanBusiness Technical Cooperation Fund. The administrations of the European Union and Switzerland are also planning to support the project. Among the Ukrainian insurance companies, INGO, Colonnade and UNIQA became partners of the mechanism, which thanks to their network will contribute to the spread of war risk insurance among businesses.

From the beginning, the program will cover cargo, motor vehicle and railway rolling stock insurance, with the possibility of expansion to other assets. This guarantee should make it possible to insure goods and vehicles worth more than 1 billion euros annually.

The decision to introduce the Guarantee Mechanism for the Restoration and Reconstruction of Ukraine is currently extremely important for domestic business. The fact is that, in general, for 11 months of the current year, the Ukrainian economy grew by 4%, but in November, the growth rate slowed down a little and amounted to 0.9% compared to the indicator of the same month a year earlier. Currently, the growth engines of the Ukrainian economy remain the transport and construction industries, processing and domestic trade. State support programs also played an important role. As for sectoral indicators, transport, domestic trade, and processing industry showed positive dynamics in November.