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Posted On

23
September
2022

Ukrainian insurers can be involved in military risk insurance – expert

KYIV. Sept 23 (Interfax-Ukraine) – Ukrainian insurers can be involved in insurance of military risks, for example, in the so-called secondary military risks or risks inherent in business in Ukraine in the liberated territories, Lesia Burbel, head of the Insurance Regulation Methodology Department of the National Bank of Ukraine (NBU), has said.

At the same time, such risks should differ in terms of territorial basis to take into account where the Russian troops did not reach and where these risks are not necessary, she said during the discussion of the insurance of military risks organized by the Centre for Economic Strategy (CES) together with the German Economic Team (GET).

According to her, such a geographical distribution of risks will enable insurers to provide them with the appropriate coating.

The regulator representative said that the organization of this insurance may occur subject to public-private partnership, which is an important direction and which is now being involved in the NBU.

"This can be done through specially created pools with the participation of Ukrainian insurers and with the involvement of a centralized transfer of risks to those international insurers and reinsurers who will have the necessary containers and readiness for such a market," she said.

According to Burbel, military risk insurance should be shared during the period of active actions and after the end of martial law, since these are different mechanisms, different products and tools that can provide the state and the private sector.

"We are only at the beginning of this path. We need to develop this product and make it. We need communication between government bodies, a private sector with the involvement of Ukrainian insurers and, most importantly, an international community. Only in this symbiosis we can offer this product to insurers – as small companies (for example, for insurance of agricultural machinery, cars, life), and large investors – commercial structures for the restoration of objects in Ukraine," the representative of the NBU said.