Ukraine Moves Toward Comprehensive Military Risk Insurance Program to Safeguard Property and Business in Frontline Areas
Ukraine is preparing to implement significant reforms in the field of military risk insurance, marking a crucial step toward strengthening national defense and economic resilience amid ongoing military conflicts.
The Ukrainian government, led by the Cabinet of Ministers, plans to launch a new insurance initiative aimed at compensating damages to property located in frontline territories and providing protection for businesses operating near conflict zones.
This proposal has received the approval of the country’s leadership and has been supported by parliamentary committees.
Parliament member Danilo Hetmancev, who chairs the committee on finance, taxes, and customs policy, announced that the program will consist of two main components.
The first involves reimbursing damages to property on front-line areas through funds allocated by the Export Credit Agency of Ukraine (ECA), contingent on the submission of relevant claims.
The second component includes creating a military risk insurance system for less affected areas, supported by government budget subsidies that cover part of the insurance premiums.
This approach aims to make insurance products accessible to small and medium-sized enterprises as well as private citizens.
To realize this initiative, minor amendments to existing legislation and a government budget decision are necessary, which are expected to be cost-effective.
This measure will serve as an effective tool in enhancing Ukraine’s resilience and defense capabilities.
Notably, last year, Ukraine’s Financial Stability Council endorsed the development of a full-scale military risk insurance system, which is currently under discussion among experts and aims to prepare the legal framework for submission to the Verkhovna Rada for future approval.