(Reuters) — Aon PLC and the U.S. International Development Finance Corp. are offering a $350 million war insurance program for Ukraine to aid capital investment and economic recovery, Aon said Wednesday.
The program consists of $300 million in war insurance for Ukraine’s health care and agricultural sectors and $50 million in war reinsurance.
The war reinsurance program was developed together with the Ukraine Ministry for Development of Economy and Trade, Aon said.
War insurance covers businesses for war damage to their properties.
Western insurers have largely stepped back from insuring Ukraine following Russia’s invasion in February 2022, making it harder for businesses to operate in the country.
“We’re very hopeful that our announcement today of reinsurance … will lead immediately to some other deals with local insurers,” DFC CEO Scott Nathan told Reuters on the sidelines of a conference in Berlin on investing in Ukraine.
Nathan said the Ukrainian economy had bounced back quite a bit, but the situation remained “very challenging.”
Other brokers have also been looking for ways to fill the insurance gap.
Willis Towers Watson PLC last month announced a partnership with Ukrainian insurer VUSO to provide insurance for cargo and war on land, led by Lloyd’s of London syndicate Markel. The insurance covers transportation of goods overland within Ukraine’s borders.
