Aon plc and the European Bank for Reconstruction and Development (EBRD) announced on December 12, 2024, the launch of an innovative €110 million Ukraine Recovery and Reconstruction Guarantee Facility. This facility is designed to revitalize the war risk insurance market in Ukraine by boosting reinsurance capacity for private sector insurers. Russia's full-scale invasion in February 2022 led to a significant reduction in available reinsurance capacity.
The EBRD's guarantee will cover losses on specific war-related risks underwritten by local Ukrainian insurers, leveraging existing market infrastructure. Greg Case, CEO of Aon, stated that this facility enhances the stability of the insurance market in Ukraine and strengthens the foundation for economic resiliency and growth. The program is an open platform, with MS Amlin as the first international reinsurance partner.
Initially, the scheme will cover inland cargo, motor vehicle damage, and railway rolling stock, with flexibility to expand to other assets. It is expected to insure up to €1 billion worth of goods and vehicles in transit each year, driving significant economic impact. This initiative builds on Aon's previous work to support Ukraine's economy, representing over $465 million in public and private capital for war risk insurance.
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