Re/insurer to underwrite first risks on innovative scheme that could provide up to €5bn in coverage over five years for Ukraine SMEs.
MS Amlin has bound a groundbreaking reinsurance scheme that could provide up to €1bn in cover annually for Ukraine small and medium sized enterprises (SMEs).
The scheme, developed in partnership with Aon and the European Bank for Reconstruction and Development (EBRD), aims to revitalise Ukraine’s war risk insurance market by enabling local insurers to begin offering inland cargo and transport cover for SMEs.
Under the scheme, Lloyd’s re/insurer MS Amlin has committed €80m in reinsurance capacity, rising to €110m over five years to support war risk policies underwritten by three Ukrainian insurers: INGO, Colonnade, and UNIQA.
The facility is backed by an EBRD guarantee, allowing MS Amlin to transfer the exposure off its balance sheet.
As these policies are typically short-term, the facility can recycle capital, potentially extending coverage for multiples of the guarantee amount.
Estimates from the EBRD suggest the facility could provide cover for up to €1bn worth of goods and vehicles each year, the equivalent of €5bn over the five-year term.
Ukraine’s insurance sector has struggled to offer commercial war risk cover since the conflict began. The facility aims to improve access to insurance, stimulating business activity and economic growth, paving the way for Ukraine’s recovery and reconstruction.
“Expanding access to insurance is critical for supporting Ukraine’s SMEs and overall economy,” said Martin Burke, MS Amlin’s chief underwriting officer.
“By addressing a gap in reinsurance, this scheme will help boost business confidence, protect supply chains, and drive economic growth,” Burke said.
The facility is initially supported by France, the UK, Norway, and the Taiwan Business-EBRD Technical Cooperation Fund. The EU and Switzerland have also pledged contributions, with further donor support expected to expand the EBRD guarantee over time.
“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,” continued Burke.
“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.
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