Business and Government discussed a framework for scaling up war risk insurance mechanisms

08/ 09/ 2026

Listen to online Stop   The Government is working to expand existing programmes and instruments covering war risks for businesses, as well as to develop a more comprehensive and universal mechanism. This was discussed during a meeting between representatives of the business community and the Ministry of Economy and Environment of Ukraine, the National Bank of Ukraine, and the Export Credit Agency (ECA).  Oleksandr Kravchenko, Minister of Economy and Environment of Ukraine, noted that the Government is considering expanding existing state programmes providing compensation for war-related losses and insurance premiums under war risk insurance agreements pursuant to Resolution No. 1541, as well as preferential lending programmes. At the same time, the scale of losses caused by shelling is already far beyond the capacity of these instruments. In response, the Government is working on a more comprehensive and universal war risk management mechanism. Its aim is not only to compensate businesses for losses, but also to support the development of the domestic insurance market, deepen cooperation with international reinsurers, and ensure a manageable burden on the state budget. To implement the concept, the parameters of the model will need to be discussed further with the business community. Deputy Minister of Economy and Environment Yehor Perelyhin outlined key changes to the existing support programmes: Resolution No. 1541 — the following changes are planned: expanding the list of assets eligible for partial compensation to include fuel, vehicles used for the transportation and storage of fuel, agricultural machinery, lorries, and trailers (semi-trailers), as well as clarifying the definitions of certain asset categories; extending the compensation mechanism to certain categories of movable assets transiting through higher-risk areas; expanding the list of higher-risk areas for the purposes of applying the Procedure to include Kyiv and Kyiv Oblast; improving the procedure for submitting, reviewing and verifying documents confirming eligibility for compensation; increasing the maximum amount of partial compensation for insurance premiums available to a single business entity during a calendar year and clarifying the procedure for determining the amount of compensation. Resolution No. 594 — the preferential lending programme is expected to be expanded. Resolution No. 28 — amendments are being developed to improve businesses’ access to working capital financing. Separately, Yehor Perelyhin presented the main ideas behind a new war risk protection framework, aimed at ensuring that the state assumes the portion of risk that the private insurance market is currently unable or unwilling to cover. This would increase the market’s capacity and make insurance more accessible to businesses. One of the main challenges remains the insufficient capitalisation of Ukraine’s insurance market. As a result, insurance for large investment projects is currently either unavailable or prohibitively expensive. The future model should provide businesses with a clear and accessible product for covering war risks at a reasonable cost. The parameters currently under discussion include a coverage limit of up to USD 10 million and an indicative insurance premium of around 2%. According to Serhii Nikolaichuk, First Deputy Governor of the National Bank of Ukraine, the NBU supports the Ministry’s proposal to establish a new, more comprehensive war risk insurance mechanism based on a public-private partnership. External resources, including support from European partners, could be mobilised to implement the mechanism, while part of the funding should be generated domestically. At the initial stage, the state’s contribution would need to be substantial. Over time, however, the state’s role would decrease, with the commercial sector assuming a larger share of the risks. Based on the results of the first half of 2026, the NBU views the development of Ukraine’s insurance market positively. At the same time, the cost of insurance products covering war risks remains high due to the elevated level of such risks and the high cost of reinsurance. Ruslan Hashev, Chair of the Board of the ECA, presented the results of the existing military risk compensation programme. Since its launch, the ECA has received 605 applications, of which 315 have already been approved, 219 are currently being processed by the ECA, 7 have been returned for revision, and 66 have been rejected. The maximum potential amount of compensation under the approved applications is up to UAH 6.74 billion, while the programme’s allocated funding for 2026 currently amounts to UAH 1 billion. The largest number of applications has been received from Dnipropetrovsk, Kharkiv, Zaporizhzhia and Sumy Oblasts. Regarding compensation for insurance premiums, 87 applications have been submitted, 28 are awaiting compensation, and 11 applications have already been compensated, totalling UAH 19.14 million. At the same time, one of the key barriers remains the time required to collect and verify documents. The procedure can currently take 4–5 months, approximately three of which are spent on the work of the local commission responsible for entering war-damaged property into the relevant register. The ECA is considering ways to streamline the procedure. The ability to submit applications through Diia and automated data verification should also significantly simplify the process. During the meeting, Vira Savchenko, CEO of BDO in Ukraine, presented a step-by-step guide on actions businesses should take in the event of property damage, prepared in cooperation with the EBA Ukraine Recovery Committee. The guide provides practical recommendations both for preparing for potential risks and for responding after property has been damaged — from the initial steps to document losses to using available compensation, support and recovery mechanisms. Following the meeting, participants also conducted a rapid survey involving 86 business representatives. The survey showed that 94% of businesses believe the existing programmes are insufficient to cover losses and war risks. The proposed first-loss coverage mechanism was supported by 78% of respondents. Regarding the optimal level of coverage, 28% of respondents selected USD 5 million, 51% selected USD 10 million, and 44% selected USD 20 million or more, with respondents able to choose more than one acceptable option. As for the cost, 35% of respondents would be willing to pay 2% of the value of their assets, 14% would be willing to pay 3% or more, while 48% believe that the premium should depend on the type and value of the asset. The European Business Association thanks the Ministry of Economy and Environment of Ukraine, the National Bank of Ukraine, the ECA and other government authorities for their open dialogue with the business community and the opportunity to contribute to the development of future mechanisms for war risk insurance and business support. The Association will provide its proposals for further refinement of the concept of the new war risk insurance model.

The Government is working to expand existing programmes and instruments covering war risks for businesses, as well as to develop a more comprehensive and universal mechanism. This was discussed during a meeting between representatives of the business community and the Ministry of Economy and Environment of Ukraine, the National Bank of Ukraine, and the Export Credit Agency (ECA). 

Oleksandr Kravchenko, Minister of Economy and Environment of Ukraine, noted that the Government is considering expanding existing state programmes providing compensation for war-related losses and insurance premiums under war risk insurance agreements pursuant to Resolution No. 1541, as well as preferential lending programmes. At the same time, the scale of losses caused by shelling is already far beyond the capacity of these instruments.

In response, the Government is working on a more comprehensive and universal war risk management mechanism. Its aim is not only to compensate businesses for losses, but also to support the development of the domestic insurance market, deepen cooperation with international reinsurers, and ensure a manageable burden on the state budget. To implement the concept, the parameters of the model will need to be discussed further with the business community.

Deputy Minister of Economy and Environment Yehor Perelyhin outlined key changes to the existing support programmes:

Resolution No. 1541 — the following changes are planned:

• expanding the list of assets eligible for partial compensation to include fuel, vehicles used for the transportation and storage of fuel, agricultural machinery, lorries, and trailers (semi-trailers), as well as clarifying the definitions of certain asset categories;
• extending the compensation mechanism to certain categories of movable assets transiting through higher-risk areas;
• expanding the list of higher-risk areas for the purposes of applying the Procedure to include Kyiv and Kyiv Oblast;
• improving the procedure for submitting, reviewing and verifying documents confirming eligibility for compensation;
• increasing the maximum amount of partial compensation for insurance premiums available to a single business entity during a calendar year and clarifying the procedure for determining the amount of compensation.

Resolution No. 594 — the preferential lending programme is expected to be expanded.

Resolution No. 28 — amendments are being developed to improve businesses’ access to working capital financing.

Separately, Yehor Perelyhin presented the main ideas behind a new war risk protection framework, aimed at ensuring that the state assumes the portion of risk that the private insurance market is currently unable or unwilling to cover. This would increase the market’s capacity and make insurance more accessible to businesses.

One of the main challenges remains the insufficient capitalisation of Ukraine’s insurance market. As a result, insurance for large investment projects is currently either unavailable or prohibitively expensive. The future model should provide businesses with a clear and accessible product for covering war risks at a reasonable cost. The parameters currently under discussion include a coverage limit of up to USD 10 million and an indicative insurance premium of around 2%.

According to Serhii Nikolaichuk, First Deputy Governor of the National Bank of Ukraine, the NBU supports the Ministry’s proposal to establish a new, more comprehensive war risk insurance mechanism based on a public-private partnership. External resources, including support from European partners, could be mobilised to implement the mechanism, while part of the funding should be generated domestically. At the initial stage, the state’s contribution would need to be substantial. Over time, however, the state’s role would decrease, with the commercial sector assuming a larger share of the risks. Based on the results of the first half of 2026, the NBU views the development of Ukraine’s insurance market positively. At the same time, the cost of insurance products covering war risks remains high due to the elevated level of such risks and the high cost of reinsurance.

Ruslan Hashev, Chair of the Board of the ECA, presented the results of the existing military risk compensation programme. Since its launch, the ECA has received 605 applications, of which 315 have already been approved, 219 are currently being processed by the ECA, 7 have been returned for revision, and 66 have been rejected. The maximum potential amount of compensation under the approved applications is up to UAH 6.74 billion, while the programme’s allocated funding for 2026 currently amounts to UAH 1 billion. The largest number of applications has been received from Dnipropetrovsk, Kharkiv, Zaporizhzhia and Sumy Oblasts. Regarding compensation for insurance premiums, 87 applications have been submitted, 28 are awaiting compensation, and 11 applications have already been compensated, totalling UAH 19.14 million.

At the same time, one of the key barriers remains the time required to collect and verify documents. The procedure can currently take 4–5 months, approximately three of which are spent on the work of the local commission responsible for entering war-damaged property into the relevant register. The ECA is considering ways to streamline the procedure. The ability to submit applications through Diia and automated data verification should also significantly simplify the process.

During the meeting, Vira Savchenko, CEO of BDO in Ukraine, presented a step-by-step guide on actions businesses should take in the event of property damage, prepared in cooperation with the EBA Ukraine Recovery Committee. The guide provides practical recommendations both for preparing for potential risks and for responding after property has been damaged — from the initial steps to document losses to using available compensation, support and recovery mechanisms.

Following the meeting, participants also conducted a rapid survey involving 86 business representatives. The survey showed that 94% of businesses believe the existing programmes are insufficient to cover losses and war risks. The proposed first-loss coverage mechanism was supported by 78% of respondents. Regarding the optimal level of coverage, 28% of respondents selected USD 5 million, 51% selected USD 10 million, and 44% selected USD 20 million or more, with respondents able to choose more than one acceptable option. As for the cost, 35% of respondents would be willing to pay 2% of the value of their assets, 14% would be willing to pay 3% or more, while 48% believe that the premium should depend on the type and value of the asset.

The European Business Association thanks the Ministry of Economy and Environment of Ukraine, the National Bank of Ukraine, the ECA and other government authorities for their open dialogue with the business community and the opportunity to contribute to the development of future mechanisms for war risk insurance and business support.

The Association will provide its proposals for further refinement of the concept of the new war risk insurance model.