War risk insurance programs already exist. These include both market-based mechanisms offered by local insurance companies and state compensation mechanisms for losses in frontline areas, as well as compensation for insurance premiums. All of them are actually functioning.
This was stated by Ukraine’s Minister of Economy, Environment and Agriculture, Oleksii Sobolev, during a meeting with businesses on the practical aspects of war risk insurance. The event, held on 19 June, brought together representatives of the Export Credit Agency of Ukraine, the National Association of Insurers of Ukraine, the Kyiv School of Economics, insurance companies ARX and INGO, as well as business representatives.
The meeting outlined what is already available and can be used today.
Insurance companies already offer coverage in the following areas:
- Property insurance for legal entities and individuals
- Transport and cargo insurance
- CASCO (vehicle insurance)
The goal of the state program is to make insurance more accessible for Ukrainian businesses and to encourage broader use of existing insurance tools in entrepreneurial activity. State compensation mechanisms are the result of joint work between the government, the Export Credit Agency, and the insurance market.
Under the state compensation program, which started on 1 January, the first results are already visible:
- 63 businesses have applied for subsidies for insurance premiums under war risk insurance contracts and will receive up to 3 million UAH in compensation for paid insurance contracts, reducing insurance costs to about 1%.
- The first participants in the program have already received payments totaling 6.8 million UAH in compensation.
- 245 enterprises in frontline regions are covered by state protection for assets worth 20.72 billion UAH. Within this program, the Ministry of Economy, Environment and Agriculture of Ukraine provides the possibility of receiving up to 30 million UAH in compensation for losses caused by Russian aggression, as well as partial reimbursement of insurance premiums.
The Ministry continues working on improving compensation mechanisms and creating a favorable environment for Ukraine’s economic recovery.
