War risk insurance will initially focus on retail products.

According to NBU department director Pervin Dadashova, the NBU is finalizing work on a draft law that will establish a full-fledged military insurance system, which, for the first time, will focus on the insurance of retail products for businesses and the public. Such diversification reduces risk and ensures the system’s stability. She noted that insurance needs for large enterprises are currently partially covered by the World Bank Group’s MIGA.

“The first stage is quick interim solutions that are already working in many areas. The second is a systemic mechanism that will work long-term,” Dadashova explained.

“There is already a draft law, and its discussion with international partners is in the final stages. It is very important to ensure donors are satisfied with all the parameters of the future insurance system so that they can participate in its financing,” she added.

The NBU will introduce the bill to the parliament this year. Along with the launch of the war risk insurance system, increased lending activity is expected.