The War Risk Insurance Landscape in Ukraine: Key Developments in 2025–2026

War risk insurance (WRI) in Ukraine has undergone significant transformation during 2025 and into early 2026. Initial fragmented efforts have evolved into a more organized ecosystem, supported by government policies, collaborative ventures between public and private entities, global financial backing, and increasing involvement from local and international insurers.

This progression plays a vital role in mitigating economic uncertainties tied to conflict, bolstering business resilience, improving financial stability, and facilitating recovery efforts across sectors.

DFC-Supported Reinsurance: Expanding Market Capacity

In February 2026, Kniazha Vienna Insurance Group (Kniazha VIG), working with Aon, established a reinsurance arrangement backed by the U.S. International Development Finance Corporation (DFC). Effective from February 1, 2026, this provides up to $25 million in reinsurance support, enabling coverage for war risk policies totaling up to $100 million.

The initiative focuses on property protection for small and medium-sized enterprises (SMEs) and private individuals in non-frontline areas. As one of the pioneering Ukrainian insurers to secure such DFC-backed limits, Kniazha VIG highlights rising international trust in Ukraine’s insurance sector.

This complements parallel tools like the UNITY Facility for maritime and cargo exposures, alongside offerings from Lloyd’s of London and various insur-tech platforms, broadening protection options for logistics, real estate, and other asset classes.

Government Framework: Compensation for Damages and Premium Support

In late 2025, the Cabinet of Ministers approved Resolution No. 1541 (dated November 28, 2025), outlining procedures for partial state aid on war-related property losses and insurance premiums. Implemented from January 1, 2026, the program is managed by Ukraine’s Export Credit Agency (ECA).

Key features include:

• Up to UAH 10 million per business entity (including affiliates) for verified destruction or damage to property in specified high-risk oblasts (e.g., Dnipropetrovsk, Donetsk, Zaporizhzhia, Mykolaiv, Odesa, Poltava, Sumy, Kharkiv, Kherson, Chernihiv—excluding occupied territories).
• Annual reimbursement of up to UAH 1 million per entity for war risk insurance premiums, applicable nationwide (outside occupied zones).

While not a complete insurance substitute, this approach eases financial burdens, improves affordability, and bridges coverage shortfalls for local companies pursuing operational continuity and growth initiatives. Budget allocations, such as UAH 1 billion earmarked for 2026, limit overall availability, with participation involving nominal fees.

Advancing Ecosystem: Public-Private Collaborations

The sector has advanced from reactive measures to systematic capacity enhancement:

• UNITY Facility broadening — Initially centered on grain shipments, this partnership now extends to all non-military cargo, delivering substantially lower premiums than conventional alternatives and supporting expanded transport operations.
• EBRD €110 million guarantee — This facility backs local insurers in providing coverage for cargo, vehicles, and rail assets, with potential to enable annual insured volumes exceeding €1 billion, fostering greater scale in logistics and mobility sectors.
• Insur-tech and private innovations — Platforms such as FortuneGuard/ARX, often linked to Lloyd’s initiatives, introduce tailored products for commercial buildings, infrastructure projects, and equity positions.

These align reinsurance, state mechanisms, and private expertise to build confidence in underwriting non-frontline exposures.

Legislative Progress Toward a National System

Efforts continue on a comprehensive framework. Draft Law No. 12372, introduced in late 2024, envisions a multi-layered national structure with state supervision, private insurer roles, international cooperation, and potential mandatory elements for select property types.

As of early 2026, adoption remains pending amid revisions incorporating feedback. The National Bank of Ukraine anticipates releasing an updated comprehensive proposal soon, harmonized with EU standards.

Complementary reforms, including 2024 amendments expanding the ECA’s authority to cover investment risks from military events, strengthen the foundational legal environment.

Implications for Businesses and Economic Recovery

Ukraine’s war risk insurance sector has matured beyond emergency fixes:

• Government aid lowers entry barriers and provides essential safeguards.
• Global reinsurance, exemplified by the DFC-Kniazha VIG deal, deepens liquidity and diversifies offerings.
• Initiatives like UNITY and EBRD guarantees reduce premiums and enhance reliability for key industries.
• Ongoing reforms point toward an integrated national approach, positioning war risk coverage as a core element of economic stability.

Collectively, these steps mark a shift to robust risk infrastructure, essential for current operations and future rebuilding.

Dentons: Supporting Ukraine’s Path Forward

Dentons maintains a strong global network and specialized expertise in advising public institutions, private enterprises, and developers amid Ukraine’s complex recovery environment.

Our dedicated Global Task Force on Ukraine’s Transformation and Rebuild unites legal, regulatory, and industry specialists to guide reconstruction projects, financing arrangements, and integration into European and international systems.

For current analyses, regulatory updates, and strategic guidance on Ukraine’s business climate and opportunities, explore our Ukraine Transformation and Rebuild Hub.