Aon and the European Bank for Reconstruction and Development launch innovative war risk insurance facility for Ukraine

Core Viewpoint - Aon and the EBRD have launched a €110 million guarantee scheme to support the war risk insurance market in Ukraine, aiming to revitalize the local economy and attract international reinsurers [1][2][3] Group 1: Guarantee Scheme Details - The new Ukraine Recovery and Reconstruction Guarantee Facility will provide reinsurance capacity for international reinsurers and local Ukrainian insurers to cover war-related risks [2] - The facility is designed to leverage existing market infrastructure and risk transfer mechanisms to protect private sector investors [2] - The scheme will initially cover inland cargo, motor vehicle damage, and railway rolling stock, with potential expansion based on market demand [6] Group 2: Market Impact - The facility aims to stimulate business activity and economic growth in Ukraine by making war risk insurance more accessible [3] - It is expected to enable the provision of war risk coverage to businesses and small and medium-sized enterprises at scale through local insurers INGO, Colonnade, and UNIQA [5] - The EBRD's guarantee may insure up to €1 billion worth of goods and vehicles in transit each year, driving significant economic impact [6] Group 3: International Engagement - The global specialty reinsurer MS Amlin is the first international reinsurance partner to join the EBRD facility, allowing them to re-engage with Ukrainian insurers [4] - The facility is backed by contributions from France, the United Kingdom, Norway, Taiwan, the European Union, and Switzerland, with additional donor support expected [7] - Coordination with the Ukrainian Ministry of the Economy and the National Bank of Ukraine ensures the provision of war risk insurance policies to local companies [8] Group 4: Statements from Key Figures - EBRD President Odile Renaud-Basso emphasized the milestone for Ukraine and the importance of building a resilient insurance market to boost business confidence [9] - Aon CEO Greg Case highlighted the firm's commitment to identifying investment opportunities in Ukraine during the ongoing war [10] - Ukrainian Deputy Prime Minister Yulia Svyrydenko expressed gratitude for the insurance mechanism, which is expected to support small and medium-sized businesses and attract investments [10] Group 5: Aon's Previous Efforts - Aon's initiatives over the past year have represented more than $465 million in public and private capital for war risk insurance in Ukraine [10] - The firm collaborated with the U.S. International Development Finance Corporation to create a pioneering insurance program for businesses operating in Ukraine [10] - The EBRD has deployed €5 billion in Ukraine since February 2022, focusing on energy security, infrastructure, food security, and the private sector [11]