EBRD and Aon Expand War Insurance to Goods Temporarily Stored in Ukraine

Companies operating in Ukraine can now request war-risk insurance for goods temporarily held in storage, following the expansion of a scheme developed by the European Bank for Reconstruction and Development (EBRD) and Aon. The change announced on October 13 adds protection for a stage of the commercial chain in which goods remain exposed to attacks between shipments.

In brief The scheme is being extended to temporarily stored goods and to the transport and storage of certain assets in the gas sector. Guarantee capacity is increasing by €40 million, to €150 million, with additional support from the EU. Universalna and USG are joining the three insurers already participating: INGO, Colonnade and UNIQA. EBRD and Aon report more than €500 million in coverage provided through reinsurance, across nearly 10,000 policies. Companies apply for policies through insurers or intermediaries, while terms and limits are set individually.

The expansion concerns the Ukraine Recovery and Reconstruction Guarantee Facility, known by the abbreviation URGF. It was created to restore international reinsurance capacity to a market from which many participants had withdrawn after Russia’s full-scale invasion in 2022. Without the ability to transfer part of the risk, local insurers found it more difficult to offer companies protection against war-related losses.

The facility’s guarantee capacity is rising from €110 million to €150 million. The additional support is provided by the European Union through the Ukraine Investment Framework. The ceiling supports the market’s capacity to assume risks and is not an amount distributed directly to companies. According to the EBRD, the initial capacity was already fully used by participating insurers and their clients.

In addition to temporarily stored goods, the expansion covers the transport and storage of certain assets in the gas sector. These categories are added to domestic freight transport, damage to motor vehicles and railway rolling stock, for which the scheme already provided protection.

An interested company takes out a policy with an insurer, which may transfer part of the assumed risk to a reinsurer. The mechanism administered by Aon includes international reinsurer MS Amlin, backed by the EBRD guarantee. As a result, part of the potential losses is assumed outside the local insurer’s balance sheet, enabling it to provide more coverage than it could support using its own resources alone.

Universalna and USG are now joining INGO, Colonnade and UNIQA. Companies can request information and quotes from participating insurers or through intermediaries. In its October 13 announcement, UNIQA states that the terms and liability limits are determined on a case-by-case basis. For a warehouse or shipment, the actual protection results from the goods and risks listed in the policy, together with the contractual limits and exclusions.

Before the expansion was announced, the scheme had supported more than €500 million in reinsurance-backed coverage for goods and vehicles through nearly 10,000 policies, according to the EBRD and Aon. The cumulative value may exceed the guarantee because the capacity is reused for successive policies, generally with short terms.

Official documentation from Switzerland, one of the facility’s donors, explains the role of public support in absorbing initial losses and attracting private capacity. The objective is to rebuild a market where companies can purchase commercial protection and continue operating in wartime conditions. For a company seeking to protect its goods between two shipments, the next step is to request a quote for the goods and the intended storage location.