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Ukrainian authorities have drafted a law to introduce a nationwide system that would pool various war risk insurance mechanisms into a single system to attract investors, the Economy Ministry said in a press release on Thursday.
"The lack of coverage for war risks is a significant obstacle to attracting investors for the reconstruction of Ukraine and the development of our economy," said First Deputy Minister of Economy Oleksii Sobolev. "We want to fix this by creating a single system of insurance against war risks."
Sobolev noted war risk insurance tools already on the Ukrainian market include the Unity Facility mechanism for ship insurance, projects by the World Bank's Multilateral Investment Guarantee Agency (MIGA) and cooperation with the US International Development Finance Corporation (DFC).
"Our goal is to combine all existing programs into a single pool, create clear rules of the game and ultimately be able to attract international reinsurers to this market," Sobolev stated.
Separately, the draft law would create a State Agency for War Risk Insurance, which will set a common policy of risk assessment and acceptance for insurers participating in the system.
The agency would also develop standardized insurance products, determine centralized approaches to pricing, and maintain a single centralized database in the system of war risk insurance.
