Ukraine is developing a new insurance program to cover war-related risks, including damage to property in frontline areas and other regions across the country.
Russia’s ongoing full-scale invasion has left businesses and property vulnerable nationwide, hindering investment and economic recovery in the absence of financial safeguards.
The new program aims to mitigate those risks and will consist of two components, separating coverage for frontline zones from the rest of the country, according to Danylo Hetmantsev, head of the Verkhovna Rada’s Committee on Finance, Tax and Customs Policy.
The first component will offer compensation for property damaged in frontline areas. Claims under this component will be handled and paid out through the Export Credit Agency (ECA).
The ECA, originally established to insure losses from violations of export contracts, was later mandated under Ukrainian law to cover damages arising from military and political risks.
The second component will cover regions beyond the front line. The government will subsidize part of the insurance premiums, making coverage more affordable for businesses and individuals and encouraging broader participation in war risk protection.
To launch the program, amendments to the ECA law and a government resolution establishing a corresponding budget program are required, Hetmantsev said. He emphasized that the program will not place a burden on the state budget.
“It was a difficult path. I thank Ukraineʼs Cabinet of Ministers and the National Bank of Ukraine (NBU) for their constructive approach and await the final decisions, ” Hetmantsev wrote.
In September 2024, representatives of the NBU and Ukraine’s Ministry of Economy introduced a draft law to establish a nationwide war risk insurance system, funded through mandatory contributions and donor support. The draft also includes provisions to create a State Agency for War Risk Insurance under the Ministry of Economy.
The legislation is designed to protect both individuals and businesses by ensuring compensation for war-related losses.
“The lack of war risk coverage is a significant obstacle to attracting investors to rebuild Ukraine and develop our economy,” former Deputy Economy Minister Oleksiy Sobolev said in a press release. “We want to fix this by creating a unified system of war risk insurance.”
According to the release, the new program will cover physical damage caused by warfare. Mandatory insurance is planned for property used as collateral and for housing construction projects, with ongoing consultations to finalize the list of eligible assets. In future phases, coverage is expected to expand to a broader range of property and assets.