The Cabinet of Ministers is launching a state program of insurance against war risks, which will start from October 1, 2025. Businesses will be able to insure themselves against consequences of war using two mechanisms: compensation for destroyed property for frontline territories, and lower insurance rates for other regions with state support, Forinsurer writes.

The Export Credit Agency (ECA) will become the program operator in frontline territories. Entrepreneurs and companies will be able to receive compensation for real estate damaged or destroyed because of military actions. It is noted that changes to the legislation are necessary for the full launch of this mechanism.

As explained by the Chairman of the Verkhovna Rada Danylo Getmantsev, the program costs will be moderate, and he emphasized the possibility of a quick launch without creating a new fund or agency.

The limits of insurance payments have not yet been established. Financing is planned to be provided by the state budget and through international partners. Getmantsev also drew attention to the fact that Ukraine lacks a system of mass insurance of military risks for businesses, which significantly complicates work of enterprises during the military conflict. At the same time, he recalled that Ukrainians already could insure their homes against destruction caused by military actions.

The insurance market has positively assessed the program, seeing compensation of premiums as an incentive for business. At the same time, experts note that due to limited coverage limits and insurers’ reluctance to take on significant risks, mass demand should not be expected yet, the source added.