War risk insurance is planned to be launched in the second quarter of 2024
The Export Credit Agency (ECA) plans to start war risk insurance of international and national investments, and loans related to investments
This was reported in the European Business Association.
As noted, the Law of Ukraine dated November 22, 2023 No. 3497-IX entered into force this year, which expanded the scope of EKA’s activities to insurance of direct investments and investment loans aimed at the development of export-oriented enterprises.
The list of military and political risks, as well as the conditions and procedure of insurance/reinsurance should be defined in the Resolution of the Cabinet of Ministers of Ukraine, which is currently being developed by the Ministry of Economy of Ukraine and the National Bank. This document should be published in the coming months.
EKA is already preparing several products that are expected to be used by businesses this year:
- Insurance of international and national direct investments in Ukraine and dividends;
- Insurance of loans related to investments.
Compensation can be obtained in the event of a complete stoppage of activity according to the business interruption principle (the difference between the cost of investments before the event and the cost after the event is compensated).