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EBRD, EU and Aon expand war risk insurance facility to meet evolving needs of Ukrainian businesses

Author: Nigina Mirbabaeva

Facility to cover goods in temporary storage and gas-related assets
  • EBRD and Aon expand scope and capacity of the Ukraine Recovery and Reconstruction Guarantee Facility (URGF) to meet evolving needs of Ukrainian businesses
  • Goods temporarily stored in warehouses and gas-related assets now eligible for coverage
  • Scheme is supported by a guarantee from the European Union

Amid growing economic pressures and escalating Russian attacks, the European Bank for Reconstruction and Development (EBRD) is expanding the scope and capacity of the Ukraine Recovery and Reconstruction Guarantee Facility (URGF), its war-risk insurance scheme developed with Aon, a leading global professional services firm.

With the existing €110 million capacity now fully used by Ukrainian insurers and their clients, the Bank is increasing the scheme to €150 million so that more companies in Ukraine  can take out war-risk insurance and address the ongoing challenges posed by the war.

Through the URGF, which is managed by Aon, the EBRD is guaranteeing global reinsurer MS Amlin against losses on war-related risks underwritten by participating Ukrainian insurers. In turn, these insurers can obtain reinsurance coverage and expand their war insurance offering.

The additional capacity is backed by donor coverage from the European Union under its Ukraine Investment Framework. It will allow existing insurers INGO, Colonnade and UNIQA, along with two new Ukrainian insurance companies – USG (owned by the Vienna Insurance Group) and Universalna (owned by Fairfax Financial Group, Canada) – to offer more war-risk cover.

The facility’s scope has also expanded. The transport and storage of gas-related assets, as well as goods in temporary storage in warehouses will now be eligible for coverage, in addition to inland cargo, motor vehicle damage and railway rolling stock, which the scheme already covers.

The expansion of the URGF comes as Ukraine contends with intensifying Russian attacks on energy, transport, logistics and civilian infrastructure, as well as the renewed blockade of Black Sea ports. These developments have put Ukrainian businesses and the economy under severe strain and so reliable war-risk insurance is essential for companies to manage risk and keep operating.

The initial €110 million guarantee – backed by donor coverage from France, Norway, Switzerland, the United Kingdom and the TaiwanBusiness-EBRD Technical Cooperation Fund – is fully deployed, having supported more than €500 million of reinsurance coverage for goods and vehicles across nearly 10,000 policies. Premiums generated by these policies have so far exceeded claims, and MS Amlin has not needed to call on the EBRD guarantee – a sign that Ukraine’s war-risk insurance and reinsurance markets can operate commercially.

The EBRD is Ukraine’s largest institutional investor. The Bank has significantly stepped up its investment in the country since Russia’s full-scale invasion, deploying €11 billion there since 2022, including a record €2.9 billion in 2025. The EBRD remains a committed and steadfast partner to Ukraine.

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