War risk insurance plays a crucial role in unblocking the flow of private investment needed to support Ukraine’s economy in wartime. The U.S. Government’s support in creating an effective market for private investment insurance against war risks in Ukraine and the conditions necessary for American businesses to operate in the Ukrainian market were discussed during an online meeting on war risk insurance in Ukraine with the participation of First Deputy Prime Minister of Ukraine – Minister of Economy of Ukraine Yuliia Svyrydenko and U.S. Secretary of Commerce Gina Raimondo. 

The event took place on 6 July and was also attended by Ambassador of Ukraine to the U.S. Oksana Markarova and top executives of U.S. companies such as Blackrock, DFC, AON PLC, Zurich, Chubb Group and Citibank.

"Full access to the private insurance market will ensure the flow of private investment into the Ukrainian economy, which is necessary for rapid recovery and reconstruction. Initially, the focus is on trade insurance with further expansion to investment insurance. For objective reasons, the global insurance industry currently does not provide adequate insurance coverage. The U.S. Government is willing to support Ukraine in developing its insurance market. Now we need to determine what conditions are necessary for American companies to work actively in the Ukrainian market,” said Yuliia Svyrydenko.

Currently, due to the hostilities caused by the russian federation, the global insurance industry is not providing large-scale insurance services to meet the needs of private businesses in full. The risk of insolvency does not allow large reinsurers and capital providers to enter the market. Another reason is the lack of data on war risks from Ukraine to allow them to assess risks and thus enter the market.

Thus, during the meeting, the parties discussed the further work of the Ukrainian investment market, the possibility of insurance in Ukraine, the vision of large American companies for their work in Ukraine, their risks and intentions to increase the pace of their work in Ukraine.

The Ukrainian side noted that the Ministry of Economy was already working on the development of a risk data exchange platform that would allow insurers and investors to assess and guarantee military risks in Ukraine. This is a long-term solution aimed at creating an insurance pool and proper risk coverage.

Following the meeting, the parties agreed to set up a working group to keep developing a plan for the development of insurance services in Ukraine and implement the agreements reached during the meeting.