UKRAINE: A war risk insurance system to be created in Ukraine

21 February 2024 — Marina MAGNAVAL
The Financial Stability Board has agreed on a concept note for creation of a fully functional war risk insurance system in Ukraine. The concept was developed with the participation of specialists from the World Bank, the National Bank (NBU), the Ministry of Finance, and the Ministry of Economy, Forinsurer reports.

The model of war risk insurance defined by the concept provides for introduction of compulsory and voluntary insurance. Presentation and discussion of this concept with business representatives will be the next step.

The proposed model will involve local insurers, international reinsurers and the state represented by a specially created State Agency (or another institution determined based on the results of future discussions). Further development of the model and preparation of new legislation will continue within the framework of a working group consisting of specialists from the NBU, the Ministry of Finance, and the Ministry of Economy.

Insurance of investments against war risks in Ukraine is planned to be launched in the 2Q2024. The list of military and political risks, as well as the conditions and procedure for insurance/reinsurance will be determined by the Government Resolution, which is being developed by the Ministry of Economy and the National Bank. This document is due to be published in the coming months.