Will war risk insurance become the new standard for business?
10 February 21:49
Ukraine has launched an updated state mechanism for insuring business property against military risks—one of the few tools designed to reduce financial losses for entrepreneurs in wartime. This was reported by the Ukrainian Chamber of Commerce and Industry , according to "Komersant Ukrainian".
The key change is the expansion of the list of objects eligible for compensation: now it includes not only real estate but also production equipment.
For many companies, equipment is a critical asset — more expensive than buildings and more difficult to restore. Therefore, this step looks like an attempt to bring state support closer to the real needs of business.
What exactly does the updated mechanism offer?
Under the terms, compensation can be up to UAH 10 million for insured property or up to UAH 1 million in the form of insurance premium compensation for legal entities. This approach combines direct compensation for losses with partial subsidization of the cost of insurance.
Formally, this should lower the barrier to entry for companies that previously did not insure their property due to the high cost of policies or distrust of payment mechanisms.
The key issue is business awareness
However, launching the mechanism does not guarantee its widespread use. The Ukrainian Chamber of Commerce and Industry acknowledges that the main unknown is the level of awareness among entrepreneurs. That is why a survey will be launched in February as part of the Business Barometer study, which should show whether businesses are aware of the new opportunities and are ready to take advantage of them.
The experience of previous state support programs shows that without active communication, even well-designed tools remain niche.
Insurance as a condition for recovery
Insurance against military risks is not just a matter of compensation. For banks and international investors, the existence of such mechanisms is a signal of reduced risk and a prerequisite for lending and new investments.
That is why such programs are often seen as part of a broader economic policy — from stabilizing the operations of existing enterprises to preparing for post-war recovery.
Limitations and expectations
At the same time, compensation amounts remain limited for medium and large businesses, especially in industry. This means that the mechanism is more focused on small and some medium-sized businesses than on large manufacturing complexes.
