EBA supports the draft law on war risk insurance with further revisions

04/ 07/ 2025

The European Business Association supports the adoption of the draft law “On the System of War Risk Insurance” in its first reading. According to the EBA’s experts, passing the draft in its current version will enable further parliamentary discussion and allow for refinement of the document with input from relevant specialists. The establishment of a war risk insurance system is a critically important step toward attracting investment and rebuilding the economy. To recall, on 27 September 2024, a discussion of the working version of this draft took place with the participation of representatives from the business community, the National Bank of Ukraine, the Ministry of Economy, the Ministry of Finance, and the World Bank. Following this meeting, the ЕВА submitted its proposals to the NBU and the Ministry of Economy. The final version of the draft law includes one of the EBA’s key proposals — the removal of mandatory cargo insurance during transportation. However, several important business concerns remain and must still be addressed. Therefore, the business community urges lawmakers to take into account additional proposals when preparing the draft law for its second reading, namely: Ensure legal clarity regarding provisions on mandatory insurance; Establish a clear and exhaustive list of objects subject to mandatory insurance, excluding the possibility of further expansion or ongoing changes to this list; Remove “pledged assets” from the list of mandatory insurance objects. This requirement could complicate business financing, increase the cost of credit, and negatively affect investment projects. Moreover, assets pledged to banks often include movable property such as shares in companies’ authorised capital, intellectual property rights, and claims — assets that are difficult or impossible to insure against war risks. The EBA also highlights the importance of developing alternative mechanisms for protecting businesses from war risks, such as voluntary insurance with state support. Many companies, aware of the risks, are already entering into voluntary insurance agreements independently. Therefore, it is crucial to provide state support for such cases — particularly through incentives that improve insurance conditions, especially for property located in potentially high-risk and high-risk areas. This approach, in the view of the business community, would be more effective both for protecting businesses and for developing the insurance market. The ЕВА has already submitted its position to Danylo Hetmantsev, Chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy. Business representatives stand ready to participate in further discussions together with the Parliament, government, and National Bank of Ukraine.

The European Business Association supports the adoption of the draft law “On the System of War Risk Insurance” in its first reading.

According to the EBA’s experts, passing the draft in its current version will enable further parliamentary discussion and allow for refinement of the document with input from relevant specialists. The establishment of a war risk insurance system is a critically important step toward attracting investment and rebuilding the economy.

To recall, on 27 September 2024, a discussion of the working version of this draft took place with the participation of representatives from the business community, the National Bank of Ukraine, the Ministry of Economy, the Ministry of Finance, and the World Bank. Following this meeting, the ЕВА submitted its proposals to the NBU and the Ministry of Economy.

The final version of the draft law includes one of the EBA’s key proposals — the removal of mandatory cargo insurance during transportation. However, several important business concerns remain and must still be addressed.

Therefore, the business community urges lawmakers to take into account additional proposals when preparing the draft law for its second reading, namely:

Ensure legal clarity regarding provisions on mandatory insurance;
Establish a clear and exhaustive list of objects subject to mandatory insurance, excluding the possibility of further expansion or ongoing changes to this list;
Remove “pledged assets” from the list of mandatory insurance objects. This requirement could complicate business financing, increase the cost of credit, and negatively affect investment projects. Moreover, assets pledged to banks often include movable property such as shares in companies’ authorised capital, intellectual property rights, and claims — assets that are difficult or impossible to insure against war risks.

The EBA also highlights the importance of developing alternative mechanisms for protecting businesses from war risks, such as voluntary insurance with state support. Many companies, aware of the risks, are already entering into voluntary insurance agreements independently. Therefore, it is crucial to provide state support for such cases — particularly through incentives that improve insurance conditions, especially for property located in potentially high-risk and high-risk areas. This approach, in the view of the business community, would be more effective both for protecting businesses and for developing the insurance market.

The ЕВА has already submitted its position to Danylo Hetmantsev, Chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy. Business representatives stand ready to participate in further discussions together with the Parliament, government, and National Bank of Ukraine.