In the context of a full-scale war, the issue of protecting property, life, and business is of utmost importance. The Ukrainian insurance market, demonstrating remarkable resilience and adaptability, has developed and actively offers effective mechanisms for insuring against war risks. In a series of interviews with leading Ukrainian media outlets, Denys Yastreb, General Director of the National Association of Insurers of Ukraine (NAIU), explained in detail how this system works, dispelled common myths, and outlined future prospects.
Relevance of the Topic: From Caution to Accessible Protection
At the beginning of the full-scale invasion, Ukrainian insurers acted with extreme caution due to the complete unpredictability and lack of statistics regarding war risks. However, over time, having accumulated data, companies were able to develop and offer real products to citizens. Today, insuring property and vehicles against the consequences of missile attacks or falling drone debris has become an accessible and viable option for millions of Ukrainians.
As Denys Yastreb emphasizes, the demand for insuring housing and cars against the consequences of strikes is currently fully covered by the capacities of Ukrainian companies. This demonstrates the maturity and self-sufficiency of the domestic market, capable of providing financial protection even in the most challenging conditions.
Focus on Insurance: What, How, and How Much?
A key aspect is understanding what exactly can be insured and under what conditions.
What Can Be Insured? The service extends to housing (apartments, houses), vehicles (often as an option in CASCO/comprehensive auto insurance), as well as life and health. There are even programs for insuring individual elements, such as windows and doors.
What Does the Policy Protect Against? The insurance covers direct damage caused by falling missiles, drones, and their debris. It is important to note that risks associated with direct combat actions (artillery shelling, airstrikes) in territories near the front line are usually not covered.
Cost and Coverage Prices have become significantly more affordable. For example, an annual policy for a two-bedroom apartment in Kyiv can cost from UAH 5,000 with coverage of several million hryvnias. The cost of insuring a car is approximately 1% of its value.
Reliability Services are primarily provided by companies from the TOP-15 of the market, whose activities are supervised by the National Bank of Ukraine, which guarantees their solvency and reliability.
Unlike state compensation programs, insurance payments are made more quickly and can be used at one’s own discretion, giving citizens more flexibility in restoring their property.
A Look into the Future: Challenges and Legislative Initiatives
The main challenge remains the insurance of large industrial facilities, where losses can be colossal. To solve this problem, reinsurance mechanisms involving international partners are necessary. To this end, a draft law on war risk insurance is currently being discussed, which provides for the creation of a state agency for risk distribution and the establishment of clear rules for all participants. Although the project requires refinement, it can become a solid foundation for a partnership between business and the state in protecting Ukraine.
To bring this important information to the general public, the head of the National Association of Insurers of Ukraine conducted a series of clarifying interviews. Expert commentary was featured on Chornomorska TV, Kyiv TV channel, Radio Promin, and Hromadske Radio, and was also published in the “Komersant Ukrainskyi” newspaper.
Such media activity underscores the insurance community’s commitment to being transparent, providing citizens with comprehensive information, and increasing financial literacy on issues directly related to their safety and well-being.
