Insurance: Ukraine
The question
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of introducing government-backed insurance guarantees or reinsurance schemes to enable private insurers to underwrite commercial activity in Ukraine.
Answered by Emma Reynolds
As referred to in the previous PQ regarding risk mitigation in the insurance industry, the UK Government has played a leading role in developing solutions that have helped to reopen and rebuild insurance markets in Ukraine. The UK provided a £20 million contribution to the Multilateral Investment Guarantee Agency (MIGA) to extend the level of political risk and violence insurance it can provide to investors with projects in Ukraine. Additionally, the UK has also provided £5m to the European Bank for Reconstruction and Development (EBRD) to develop a complementary initiative that will make war related loss and damage cover available to firms already based in Ukraine.
While no formal assessment of the merits has been conducted, introducing government-backed insurance guarantees or reinsurance schemes could facilitate private insurers’ entry into commercial activities. Such initiatives would help identify regulatory barriers that limit market participation and enhance engagement among local businesses, financial institutions, and project sponsors.
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