A Ukraine-focused war risk insurance scheme backed by the European Bank for Reconstruction and Development (EBRD) is now fully operational and has already provided more than €5mn in coverage, the institution says. 

The facility, developed in partnership with Aon, was launched by EBRD in December as an “open platform” that helps Ukrainian insurance companies connect with international reinsurers. 

EBRD says the scheme was developed in the wake of Russia’s invasion of Ukraine in 2022, which prompted reinsurers to exit the market and left local providers “severely restricted in their ability to offer commercial insurance products”. 

By providing international reinsurers with a guarantee for losses on war-related risks, EBRD hopes to widen the availability of local insurance cover, stimulate business activity and “help to lay the foundations for Ukraine’s recovery”. 

It says in a March 31 statement that the first reinsurance contracts have now been concluded with international reinsurer MS Amlin, for cover provided by local insurers INGO, Colonnade and UNIQA. 

“The scheme has already provided reinsurance coverage totalling more than €5mn in its first few weeks, signalling strong demand for war risk insurance,” it says. 

“Policies have been signed with businesses operating in the agricultural sector, sustaining critical trade in Ukraine.” 

The scheme is backed by France, Norway and the UK, as well as a Taiwan-EBRD technical cooperation fund.  

EBRD says further support has now been pledged by the EU and Switzerland, and at full capacity the guarantee could facilitate cover totalling up to €1bn-worth of goods and vehicles per year.  

Yulia Svyrydenko, first Deputy Prime Minister and Minister of Economy of Ukraine, previously said the market had been “eagerly anticipating” the facility becoming available for use. 

The initiative is part of a raft of EBRD support for Ukraine. The institution has deployed more than €6.2bn in the country since the invasion, focusing on trade, energy and food security and vital infrastructure. 

Last month, it agreed risk participation deals totalling US$57mn with development finance institutions in France and the UK to support the provision of trade finance to local companies.