Aon and EBRD Expand War Risk Insurance Facility for Ukraine
Aon and the European Bank for Reconstruction and Development (EBRD) have increased the Ukraine Recovery and Reconstruction Guarantee Facility (URGF) from €110 million to €150 million. The expansion aims to bolster reinsurance capacity for war-related risks in the country.
Global professional services firm Aon and the European Bank for Reconstruction and Development (EBRD) have expanded the Ukraine Recovery and Reconstruction Guarantee Facility (URGF). This initiative provides reinsurance capacity to international reinsurers and Ukrainian insurance companies to cover war-related risks within Ukraine.
The facility's guarantee scheme has been increased from €110 million to €150 million. This expansion comes as Ukraine faces intensified Russian attacks on energy, transport, logistics, and civilian infrastructure, alongside a renewed blockade of Black Sea ports. These aggressions have significantly strained Ukrainian businesses and the economy, making adequate war risk insurance crucial for businesses to manage their exposure and ensure operational continuity.
Through the URGF, managed by Aon, the EBRD provides a guarantee to global reinsurer MS Amlin. This guarantee covers war-related losses underwritten by the participating Ukrainian insurers. Consequently, Ukrainian insurers can benefit from reinsurance and enhance their war insurance offerings. To date, premiums have exceeded reported claims, and MS Amlin has not needed to draw upon the EBRD guarantee, indicating a functioning market for war risk insurance in Ukraine.
Two Ukrainian insurance companies, UNIVERSALNA and USG, are joining the program, alongside previously announced participants INGO, Colonnade, and UNIQA. The facility's scope has also broadened to include the transportation and storage of gas-related assets, and a new coverage line for inventory goods in temporary warehouse storage, in addition to existing cover for inland cargo, motor vehicle damage, and railway rolling stock.
The facility is supported by France, the United Kingdom, Norway, the TaiwanBusiness–EBRD Technical Cooperation Fund, and Switzerland. Additional capacity is backed by donor funding from the European Union under its Ukraine Investment Framework (UIF). EBRD President Odile Renaud-Basso stated the URGF is a critical tool for businesses to operate amid conflict, while Aon CEO Greg Case highlighted the importance of war risk insurance for sustaining investment and building resilience.