Bill on insurance of military risks aimed at creating internal reinsurance mechanism in Ukraine – Association of Insurers

The initiative laid down in bill No. 12372 On the system of insurance of military risks is aimed at creating an internal reinsurance mechanism in Ukraine in conditions of limited supply from international reinsurance companies, Director General of the National Association of Insurers of Ukraine Denys Yastreb said.

"The main prerequisite created by the bill is the possibility of reinsurance of significant risks in a specialized public agency. This mechanism is of particular importance in the context of limited supply from international reinsurance companies," he told Interfax-Ukraine.

Yastreb explained that currently foreign partners are not ready to provide the Ukrainian market with the necessary amount of reinsurance, which significantly limits the ability of domestic insurers to cover the risks faced by medium and large businesses.

At the same time, in today's conditions, when Ukrainian business is facing unprecedented challenges related to the war, there is an urgent need to create effective financial protection mechanisms.

"One of the important steps in this direction is bill No. 12372, which lays the foundation for expanding the capabilities of Ukrainian insurance companies in covering large risks. This, in turn, will enable Ukrainian insurance companies to provide the necessary insurance protection to enterprises, which is critically important for supporting and restoring the country's economy," the association's head said.

As reported, bill No. 12372 On the war risk insurance system was registered in the Verkhovna Rada on December 30, 2024.