Lloyd's reinsurer, MS Amlin, has secured a reinsurance scheme that could provide up to €1bn (£830m) in annual coverage for Ukraine SMEs.
The scheme is designed to revitalise Ukraine's war risk insurance market by enabling local insurers to offer inland cargo and transport cover for SMEs, as reported by City AM.
Since the conflict began in February 2022, the country's insurance sector has struggled to offer commercial war risk cover.
In December, the European Bank for Reconstruction and Development (EBRD) and insurance giant Aon made headlines for creating the Ukraine Recovery and Reconstruction Guarantee Facility (URGF).
This facility is designed to support global reinsurance companies with a guarantee covering certain war-related risks underwritten by local Ukrainian insurers. London-based MS Amlin was the first international reinsurance partner to join the platform.
The reinsurer has now committed €80m (£67m) in reinsurance capacity, rising to €110m (£92m) over five years to support war risk policies underwritten by three Ukrainian insurers: INGO, Colonnade, and UNIQA. As an EBRD guarantee backs the facility, MS Amlin can transfer the exposure off its balance sheet.
The UK, France, Norway, and the Taiwan Business-EBRD Technical Cooperation Fund initially supported the facility. The European Union and Switzerland have also pledged contributions, with further donor support expected to expand the EBRD guarantee over time.
Martin Burke, MS Amlin's chief underwriting officer, commented on the scheme: "Expanding access to insurance is critical for supporting Ukraine's SMEs and overall economy."
"By addressing a gap in reinsurance, this scheme will help boost business confidence, protect supply chains, and drive economic growth. The facility highlights how specialist insurers can unlock investment in high-risk regions and demonstrates the key role of public-private partnerships in rebuilding Ukraine."
"By leading the way on this facility, we aim to attract additional market capacity, vital for Ukraine's long-term reconstruction and recovery," he added.
