MS Amlin has finalized a reinsurance agreement that could enable up to €1 billion in annual coverage for small and medium-sized enterprises (SMEs) in Ukraine.
The facility, developed in coordination with the European Bank for Reconstruction and Development (EBRD) and Aon, is structured to help revive Ukraine’s war risk insurance market by supporting local insurers offering inland cargo and transport coverage.
Under the five-year arrangement, MS Amlin will provide €80 million in annual reinsurance capacity, with the possibility of increasing that to €110 million. This capacity will back war risk policies underwritten by three Ukrainian insurers: INGO, Colonnade, and UNIQA.
The structure is supported by an EBRD guarantee, allowing MS Amlin to transfer the underlying risk from its balance sheet.
The short-term nature of the policies means the facility can potentially recycle its capital, offering cumulative coverage of up to €5 billion in insured goods and vehicles over the five-year period, according to EBRD estimates.
The initial backing for the EBRD guarantee comes from France, the United Kingdom, Norway, and the Taiwan Business-EBRD Technical Cooperation Fund. The European Union and Switzerland have pledged future contributions, and additional donor support is anticipated to scale the facility further.
MS Amlin chief underwriting officer Martin Burke (pictured above) said expanding insurance access is essential for supporting SMEs and the wider economy.
Since the onset of conflict, Ukraine’s insurance market has faced challenges in offering commercial war risk coverage. The Ukraine Recovery Guarantee Facility, through this program, seeks to improve insurance accessibility for domestic businesses and support broader economic stabilization and reconstruction efforts.
In January, McGill and Partners, an independent global specialty insurance and reinsurance broker, launched a war risk reinsurance facility for commercial properties in Ukraine. This initiative is notable for its use of AI-powered technology to assess and underwrite risks.
The facility was developed in collaboration with FortuneGuard, a Lloyd’s Lab insurtech company, and local Ukrainian insurer ARX. It offers coverage of up to US$50 million per risk for properties located more than 100 kilometers from the front line.
Prior to this facility, coverage for commercial property in Ukraine was limited, with local insurers offering policy limits up to US$500,000. This initiative significantly increases available coverage, supporting Ukraine's economic recovery by providing businesses with affordable protection against war-related risks.
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