INGO insurance company joins EBRD’s innovative war risk insurance facility with guarantees of EUR 110 million

INGO has become one of the first key participants in a new insurance program from the European Bank for Reconstruction and Development (EBRD) and the global professional services firm Aon. The program launches €110 million guarantee scheme and is designed to strengthen the war risk insurance market in Ukraine. This significantly increases reinsurance opportunities for insurance companies in Ukraine and helps solve problems related to war risks.

The new scheme from the EBRD is an open platform that allows interaction with various insurance market participants. Insurance companies INGO, Colonnade and UNIQA have become among the first local insurers to actively promote the product on the Ukrainian market. INGO will get the opportunity to operate with coverage of €50 million, which is the highest limit among the Ukrainian insurance companies.

INGO, as one of the largest Ukrainian companies in the corporate insurance segment, will be able to provide insurance coverage at the rate of €2 million per insured event, and €5 million for all insured events per policyholder. Given the company’s broad distribution capabilities, it is expected to provide insurance coverage to businesses on a significant scale.

Initially, the EBRD-Aon program will cover risks for domestic cargo, damage to road vehicles and rolling stock, with the opportunity of expanding to a wider range of assets depending on market demand.

As such insurance policies are typically short-term, the program will provide the opportunity to reallocate capital and provide coverage for an amount significantly exceeding the size of the guarantees, depending on the number of policies sold and the frequency of reported losses. Thanks to this approach, the EBRD guarantee can provide insurance for goods and vehicles in transit worth up to €1 billion each year, which will have a significant economic impact on Ukraine.

The facility is initially backed by France, the United Kingdom, Norway and TaiwanBusiness – EBRD Technical Cooperation Fund. Additional donor support has been pledged by the European Union and Switzerland. Further donor contributions will enable the growth of the EBRD guarantee over time.  

The full-scale Russian invasion of Ukraine in February 2022 has significantly reduced reinsurance opportunities in the market, as international reinsurers have largely withdrawn from Ukraine. This has left local insurance companies with limited opportunities to provide war risk insurance products. By increasing the availability of war risk insurance, this program will stimulate business activity and economic growth, paving the way for Ukraine’s recovery and reconstruction.

During the development of the program, the EBRD and Aon closely coordinated with the Ministry of Economy of Ukraine and the National Bank of Ukraine to ensure the provision of war risk insurance policies for Ukrainian companies and to strengthen the Ukrainian economy. The program is designed to complement the existing initiatives by other international organizations and the Ukrainian government.

"We are sincerely grateful to the EBRD and all parties involved in launching this insurance facility," said Yulia Svyrydenko, First Deputy Prime Minister of Ukraine - Minister of Economy of  Ukraine.

“This is a significant milestone for Ukraine and a testament to the EBRD’s unwavering commitment to supporting the country’s real economy, - Odile Renaud-Basso, President of the EBRD, said

Greg Case, CEO of Aon said: "Aon’s steadfast commitment to Ukraine compels our firm to continue to identify new opportunities for businesses to invest in the country during the ongoing war. Due to our collaboration with U.S. International Development Finance Corporation (DFC), this innovative new facility in partnership with the European Bank for Reconstruction and Development further enhances the stability of the insurance market in Ukraine and strengthens the foundation for economic resiliency and growth."

“In 2023, we took the first step towards protecting Ukrainian businesses from war risks offering a product with a limit of $250,000. The new program from the EBRD opens up unique prospects to significantly expand the level of protection for our clients. This is an important step towards the development of the war risk insurance market, which is crucial for Ukraine’s resilience and attracting long-term international investments. Additionally, war risk insurance supports the country’s economic stability by distributing the risks associated with recovery among various stakeholders, including the government, international donors and private insurers. We are sincerely grateful to everyone who has made efforts to implement this initiative and for the trust that our partners have placed in our company by choosing it as a local partner,” said Igor Gordienko.

Reference

“INGO Insurance Company” holds licenses for 18 classes of insurance and has been providing insurance services to both individuals and companies for 30 years. Since 2017, its main shareholder has been the Ukrainian business group DCH. INGO Insurance Company is among the largest insurance companies in Ukraine in terms of premiums, own assets and insurance compensation payments. Its network includes 25 branches, 5 offices and 9 customer service centers operating in all regions of the country. INGO fully complies with the requirements of the National Bank of Ukraine regarding transparency of the ownership structure, compliance with solvency standards, capital adequacy and risk management, and also maintains a high business reputation of its owners and management. The company is a full member of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU), the American Chamber of Commerce (ACC), the European Business Association (EBA), the National Association of Insurers of Ukraine (NAIU), the League of Insurance Organizations of Ukraine (LIOU) and the International Chamber of Commerce (ICC). On October 18, 2024, the rating agency IBI-Rating confirmed the long-term credit rating of IC INGO at the level of uaAA on the national rating scale.

The European Bank for Reconstruction and Development (EBRD) has provided more than €5.4 billion in support to Ukraine since February 2022, focusing on energy security, critical infrastructure, food security, trade and the private sector, as well as key policy reforms. In 2023, the EBRD’s Board of Governors approved a €4 billion capital increase to support investments during both the war and reconstruction periods.