MS Amlin, a global re/insurer based in Lloyd’s, has announced a significant reinsurance scheme designed to support Ukraine’s small and medium-sized enterprises (SMEs). This initiative could provide up to €1 billion (approximately $1.1 billion) annually in coverage, aimed at revitalizing the war risk insurance market in Ukraine.
The scheme is a collaboration between MS Amlin, the European Bank for Reconstruction and Development (EBRD), and Aon, a professional services firm. It will enable local insurers to offer inland cargo and transport insurance for SMEs, which have struggled to find coverage since the onset of the conflict in Ukraine.
MS Amlin has committed €80 million (about $86.9 million) in reinsurance capacity, with the potential to increase this to €110 million ($119.5 million) over the next five years. This funding will support war risk policies underwritten by three Ukrainian insurance companies: INGO, Colonnade, and UNIQA. The EBRD guarantees this facility, allowing MS Amlin to manage its exposure more effectively.
Because these insurance policies are typically short-term, the facility can recycle capital, which means it could potentially extend coverage for multiple times the guarantee amount. EBRD estimates indicate that this facility could cover up to €1 billion worth of goods and vehicles each year, totaling around €5 billion ($5.4 billion) over the five-year period.
The initiative aims to improve access to insurance, which is crucial for stimulating business activity and economic growth in Ukraine. Martin Burke, MS Amlin’s chief underwriting officer, emphasized the importance of expanding insurance access for SMEs, stating that it will enhance business confidence, protect supply chains, and contribute to economic growth.
The scheme also shows how public-private partnerships can attract investment in high-risk areas. The initial support for the facility comes from France, the UK, Norway, and the Taiwan Business-EBRD Technical Cooperation Fund. Contributions from the European Union and Switzerland have also been pledged, with hopes for further donor support to expand the EBRD guarantee.
MS Amlin Underwriting is part of the global insurance group MS&AD, which ranks among the top ten in the industry, with operations in various markets including Lloyd’s of London, the Middle East, and Asia. This new scheme represents a significant step toward rebuilding Ukraine’s economy and supporting its recovery efforts.