Ukrainian companies start to benefit from Aon & EBRD fully operational war risk insurance facility

Now fully operational, the Ukraine Recovery and Reconstruction Guarantee Facility (URGF) is enabling companies operating in Ukraine to access a wider range of war risk insurance options.

The URGF was launched by Aon and the European Bank for Reconstruction and Development (EBRD) back in December 2024, with global speciality reinsurer MS Amlin the first international reinsurance partner to join.

The Facility was created to support global reinsurance companies through a guarantee covering losses on specific war-related risks underwritten by local Ukrainian insurers.

Now that it is fully operational, Ukrainian insurance companies INGO, Colonnade, and UNIQA have begun to offer war risk policies backed by the EBRD’s URGF for inland cargo, motor own damage and railway rolling stock, following the conclusion of reinsurance contracts with MS Amlin.

As the initial reinsurer to join the EBRD’s facility, MS Amlin’s participation empowers these three Ukrainian insurers to significantly expand their war insurance offerings through access to international reinsurance coverage.

The scheme has already provided reinsurance coverage totalling more than €5 million in its first few weeks, signalling strong demand for war risk insurance. Policies have been signed with businesses operating in the agricultural sector, sustaining critical trade in Ukraine.

Russia’s full-scale invasion in February 2022 led to the withdrawal of most international reinsurers, severely restricting the reinsurance capacity of local insurers. This significantly hindered their ability to offer comprehensive commercial insurance due to the inability to reinsure their risks.

While limited war-related policies started to be offered in late 2023 with some international backing, the increased reinsurance capacity facilitated by the URGF now allows for higher loss limits and larger aggregates, greatly improving the availability of these essential policies.

“At full capacity, the EBRD’s guarantee could facilitate insurance cover for up to €1 billion worth of goods and vehicles in transit each year through the ability to recycle capital from generally short-term insurance policies, providing coverage worth a multiple of the guarantee amount. This will make war risk insurance more accessible, stimulate business activity and economic growth, and help to lay the foundations for Ukraine’s recovery,” an EBRD spokesperson stated.

The facility is backed by France, the United Kingdom, Norway and the TaiwanBusiness-EBRD Technical Cooperation Fund, with additional donor support pledged by the European Union and Switzerland. Further donor contributions will enable the EBRD’s guarantee to expand over time.

Since February 2022, the EBRD has deployed over €6.2 billion in Ukraine, focusing on energy security, vital infrastructure, food security, trade, the private sector, and key policy reforms.

In 2023, the EBRD’s Board of Governors approved a €4 billion capital increase to further support investment in Ukraine during both wartime and the subsequent reconstruction phase.

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