Aon has partnered with the US International Development Finance Corporation (DFC) on a US$350 million programme to build insurance capacity and accelerate new capital investment and economic recovery in Ukraine.
In detail, Aon coordinates a US$50 million reinsurance facility, working closely with the DFC and the Ukraine Ministry for Development of Economy and Trade, to support the issuance of on-the-ground war risk policies to businesses operating in Ukraine.
Aon and the DFC also collaborate on an additional US$300 million in war risk insurance specifically designed for Ukraine's health care and agriculture industries.
ARX, a Ukrainian subsidiary of Fairfax Financial, is the first company to receive certification as a qualified Ukrainian insurance company to access the reinsurance facility.
The company will work with Aon and the DFC to build a portfolio of war risk insurance policies for companies operating in Ukraine and support ARX in expanding its war risk insurance offering in the country.
Eric Andersen, president of Aon, comments: "Capital will not go where it is not protected, and this unprecedented programme with the DFC is intended to unlock and accelerate investment in Ukraine at a time when the need is most acute.
"This groundbreaking facility will enable the local insurance industry to appropriately price risk and draw much-needed new capital into Ukraine, while creating capacity and capability in the country to support reconstruction."
Meanwhile, Scott Nathan, DFC CEO, says: "The US government is taking steps to help drive capital to the private sector in Ukraine. The private sector is critical to Ukraine's recovery, and we are leveraging our unique tools, especially political risk insurance, to build investor confidence in Ukraine at this critical moment."
Former Commerce Secretary Penny Pritzker, US special representative for Ukraine's Economic Recovery, remarks: “As we looked for opportunities to support the Ukrainian economy, we recognised that a robust insurance market was essential to attracting investment in the country.
"This facility and the infusion of new private capital into Ukraine will help local businesses operate in the country today while preparing Ukraine for reconstruction and further economic growth."
