Aon has unveiled a $350m insurance programme in partnership with the US International Development Finance Corporation (DFC) to ramp up Ukraine’s recovery.
The new programme aims to enhance insurance capacity and expedite capital investment for Ukraine’s economic recovery, marking a significant move to support businesses operating amidst the ongoing conflict in the country.
Go deeper with GlobalData
It includes a $50m reinsurance facility orchestrated by Aon, a global broker operating in Ukraine.
This effort is in close coordination with the DFC and the Ukraine Ministry for Development of Economy and Trade, which will facilitate the issuance of war risk policies on the ground.
Furthermore, Aon and the DFC have developed an additional $300m in war risk insurance tailored for the critical healthcare and agriculture sectors in Ukraine.
As part of the effort, the DFC will serve as the reinsurer for eligible insurance companies in Ukraine, committing its balance sheet to cover $50m of Ukraine’s war-related reinsurance risk.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThis new facility leverages the DFC’s proven models of on-lending and insurance underwriting, particularly in areas of war and political risk, to support various local businesses.
Aon said that the additional $300m capacity for war risk insurance underscores the increasing demand for such coverage, which is expected to grow during the country’s reconstruction phase.
ARX, a Ukrainian subsidiary of Fairfax Financial, has become the first certified, qualified Ukrainian insurance company to access the reinsurance facility.
The DFC, Aon and ARX will work in close coordination to create a portfolio of war risk insurance policies for companies in Ukraine, aiding ARX in broadening its war risk insurance services within the nation.
The establishment of this facility paves the way for qualified insurance companies to offer prompt, on-the-ground war risk policies to Ukrainian businesses.
It also aims to attract private market participation and investment, laying a foundation for Ukraine’s eventual recovery.
DFC CEO Scott Nathan said: “The US Government is taking steps to help drive capital to the private sector in Ukraine.
“The private sector is critical to Ukraine’s recovery, and we are leveraging our unique tools, especially political risk insurance, to build investor confidence in Ukraine at this critical moment.”
Meanwhile, in September last year, former Commerce Secretary Penny Pritzker was appointed as the US Special Representative for Ukraine’s Economic Recovery.
