At the IMF’s request, Ukraine plans to introduce mandatory war risk insurance.

The Financial Stability Board supports a draft law that would create a fully functional military risk insurance system in Ukraine and will submit it to the parliament for consideration. The project provides for the introduction of mandatory insurance for certain objects and voluntary insurance for those who are not subject to mandatory insurance.

The state military risk insurance agency will develop standardized products under the Cabinet of Ministers. The National Bank will carry out state regulation and supervise the agency’s activities. War risk insurance is one of the 13 steps to strengthen and deepen financial and capital markets provided for in a memorandum with the IMF.

Back in February, the Financial Stability Board approved the concept of creating a war risk insurance model in Ukraine that will provide for the introduction of appropriate insurance with the participation of local insurers, international reinsurers, and the state in the form of a state agency.