Ukraine, together with international partners, has developed a concept of military risk insurance
On February 5, the National Bank’s Financial Stability Board approved a conceptual memorandum for the creation of a war risk insurance system in Ukraine.
This was announced by the head of the National Bank of Ukraine Andriy Pishnyi at the event of the European Business Association “Global Outlook”.
He noted that this conceptual note is part of Ukraine’s agreements with the International Monetary Fund, and the development of the concept was carried out together with the team of the World Bank and the IMF.
“Currently, we have a common conceptual framework (memorandum – EP), which provides that the insurance of military risks in Ukraine will be built in three levels,” the head of the regulator said.
The first level is local insurers, which will cover mandatory large-scale insurance of military risks, which will allow the formation of appropriate funds. The second level is international reinsurance. And the third level is a state agency.
“For the preparation and implementation of this concept, a working group is currently working to develop a corresponding draft law,” added Pyshny.
He emphasized that the scale Ukraine is facing, the need to insure military risks, is actually unprecedented. Thus, before finalizing the concept, the National Bank team studied the models and experience of other countries, in particular, Croatia and Israel, very deeply.
“We are working on this issue. It is not just on the table, it is in a clear schedule of events, and we will have to come up with the corresponding legislative act and provide the market with the relevant document in the near future,” the head of the NBU summarized.
The NBU previously noted that the military risk insurance model defined by the concept provides for the introduction of mandatory and voluntary insurance, will be discussed and implemented in stages. The next step will be the presentation and discussion of the specified concept with business representatives.
Representatives of the Ministry of Finance and the Ministry of Economy also participate in the development of the concept.