During the EU-Ukraine Investment Conference taking place in Warsaw, the U.S. International Development Finance Corporation (DFC) has signed an agreement in collaboration with the international insurance and reinsurance broker AON and the insurance company ARX to launch a war risk reinsurance mechanism.
This was reported by the press service of the Ministry of Economy.
In June, DFC announced the establishment of a mechanism that will provide insurance not only to investors to attract investments but also to small and medium-sized enterprises by expanding the reinsurance program for Ukrainian insurance companies.
"The most important aspect is that this insurance is provided through Ukrainian insurance companies that possess the necessary knowledge and expertise in underwriting. The launch of the reinsurance mechanism is also a significant signal for the recovery and attraction of investments in Ukraine," said Oleksiy Sobolev, First Deputy Minister of Economy.
According to the agreement, DFC will act as a reinsurer for ARX, which will issue insurance policies in Ukraine and cover physical damage risks caused by the war.
"It is expected that the implementation of this DFC mechanism will positively impact the number of private companies engaged in recovery projects," reports the Ministry of Economy. Furthermore, DFC is considering providing additional reinsurance volumes to other Ukrainian insurance companies.
The Ministry of Economy is also working with the European Commission to implement a similar mechanism with other financial institutions.
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