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

Brings guarantee scheme through the EBRD from €110 to €150 million to provide reinsurance capacity for international reinsurers and Ukrainian insurance companies to cover war related risks in Ukraine UNIVERSALNA and USG join three previously announced Ukrainian insurance companies in the programAon plc (NYSE: AON), a leading global professional services firm, and the European Bank for Reconstruction and Development (EBRD) announced the expansion of the highly innovative Ukraine Recovery and Reconstruction Guarantee Facility (URGF) which has strengthened the war risk insurance market in Ukraine through the provision of reinsurance capacity to private sector insurers.The expansion of the URGF – which has led to more than €500 million of reinsurance coverage for goods and vehicles across nearly 10,000 policies to date – from €110 to €150 million arrives as Ukraine contends with intensifying Russian attacks on energy, transport, logistics and civilian infrastructure, as well as the renewed blockade of Black Sea ports. The attacks have significantly strained Ukrainian businesses and the economy, and adequate war risk insurance is essential for businesses to manage their risks and ensure that their business activity can continue.Through the URGF, which is managed by Aon, the EBRD is providing global reinsurer MS Amlin with a guarantee covering losses on war-related risks underwritten by the local Ukrainian insurers participating in the facility. This enables the Ukrainian insurers to benefit from reinsurance coverage and expand their war insurance offering. Premiums generated by these policies have exceeded claims reported to date, and MS Amlin has not called on the EBRD guarantee – a sign that the insurance market for war risk in Ukraine is functioning well.With the expansion of the facility, Ukrainian insurance companies UNIVERSALNA (Fairfax Financial Group, Canada) and USG (Vienna Insurance Group) join previously announced local market participants INGO, Colonnade and UNIQA in driving the expansion of the product in the Ukrainian market.The scope of the facility also expanded with transportation and storage of gas related assets now covered and it opens a new line of business to protect inventory goods in temporary storage in warehouse in addition to inland cargo, motor vehicle damage and railway rolling stock already covered under the scheme.The facility is backed by France, the United Kingdom, Norway and TaiwanBusiness–EBRD Technical Cooperation Fund and Switzerland. The additional capacity is supported by donor coverage from the European Union under its Ukraine Investment Framework (UIF).Odile Renaud-Basso, President of the EBRD, said: "The URGF is a critical tool that helps businesses in Ukraine to manage their risk and continue operating in a war environment. We're pleased to work with our partners to expand the scheme and offer additional support to more companies amidst challenging operating conditions."Greg Case, President and CEO of Aon, said: "With the war continuing to imperil the Ukrainian economy, war risk insurance is central to sustaining investment and building resilience in Ukraine. We are proud to welcome UNIVERSALNA and USG to the expanded facility, which has already led to more than €500 million of reinsurance coverage for goods and vehicles across nearly 10,000 policies and will now protect more businesses, while preparing the country for recovery and reconstruction."Martin Burke, Chief Underwriting Officer, MS Amlin, said: "Ukrainian businesses continue to trade and invest despite the conflict, driving strong demand for war-risk insurance. Expanding the facility will allow local insurers to meet more of that demand and provide cover across a broader range of commercial risks. This expansion is an important step towards building a broader, more sustainable market. Bringing in more reinsurers and additional capacity will be vital to supporting Ukraine's economic resilience and longer-term recovery."Oleksiy Muzychko, CEO of UNIVERSALNA, said: "We would like to express our sincere appreciation to the EBRD and Aon for their continued support. This initiative is especially important for Ukrainian businesses today, and for the agricultural sector in particular. By joining this reinsurance program, we will increase our capacity to provide war risk coverage, enabling more businesses across Ukraine to access the protection they need to sustain operations and contribute to the country's economic resilience."Pavlo Nelga, CEO of USG, said: "At USG, we strongly believe in the continued resilient development of Ukrainian business, and joining the expanded facility helps us better address current needs in Ukraine. We are grateful to our international partners for their continued support and for upgrading the facility for the Ukrainian insurance market. We look forward to remaining a strong partner in rebuilding the country after the war."This latest announcement builds on Aon's continued work to assist Ukraine – coordinating more than $500 million in public and private capital to reinforce Ukraine's economy, enable foreign investment during the war and prepare for reconstruction. Over the last three years, Aon announced a $350M, first-of-its kind insurance program with the DFC to build insurance capacity and accelerate new capital investment and economic recovery in Ukraine, called on the (re)insurance industry to remove blanket exclusions for risks originating in Ukraine, Russia and Belarus, and organized a €110M ($115M) insurance facility in collaboration with the European Bank for Reconstruction and Development (EBRD) and launched a Ukraine Early Careers Program to hire displaced Ukrainians in Aon offices.

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

Autres actualités de l'entreprise