Ukraine is advancing a legislative proposal to establish an internal reinsurance mechanism amid challenges in securing international reinsurance support. The bill, No. 12,372, outlines a framework for a domestic system to manage military risks, according to Denys Yastreb, Director General of the National Association of Insurers of Ukraine. The move is prompted by the limited supply of reinsurance services from global providers, highlighting the country’s need for self-reliance in financial preparedness.
Yastreb emphasized that the current global market for reinsurance is constrained, particularly in light of the ongoing conflict, which has led to a reduction in available capacity and heightened premiums. The proposed system aims to ensure that Ukraine can maintain its financial stability and continue to operate essential services without relying heavily on foreign insurers. This initiative aligns with broader efforts to strengthen the country’s economic resilience and independence.
Industry experts suggest that the internal reinsurance mechanism could also serve as a model for other nations facing similar challenges. However, the implementation of such a complex financial system requires careful planning, regulatory oversight, and technical expertise. Yastreb noted that the National Association of Insurers is working closely with government agencies to develop the necessary frameworks and ensure the mechanism’s effectiveness. As Ukraine continues to navigate the financial implications of the conflict, this development represents a significant step toward long-term economic security.