War Risk Insurance in Ukraine. Overview of the War Risk Insurance Market for the First Half of 2026

War risk insurance in Ukraine today is no longer a theoretical possibility, but an effective financial instrument for businesses. Despite the extremely challenging conditions, the Ukrainian insurance market continues to fulfill its obligations, pay compensation, and expand insurance coverage opportunities for businesses and large infrastructure facilities. In the first half of 2026 alone, insurers paid UAH 176.5 million in claims to clients, including UAH 129.4 million in the second quarter compared with UAH 47.1 million in the first quarter. What lies behind these figures, how the war risk insurance mechanism works, and what opportunities are currently available to Ukrainian businesses — the National Association of Insurers of Ukraine explains.

The National Association of Insurers of Ukraine published an overview of the war risk insurance market for the first half of 2026. The data is based on reports from 17 insurance companies participating in the PRIMA information exchange.

The key conclusion of the first half of the year is that war risk insurance in Ukraine operates as a fully-fledged financial instrument. The market not only fulfills its obligations to clients but also consistently expands coverage to new segments of the economy, from corporate real estate to renewable energy facilities.

The insurance market does not observe the war from the sidelines. Insurers are as much a part of the Ukrainian economy as their clients: they operate in the same cities, face the same risks, lose their own offices and branches, and, together with businesses, calculate losses after every attack. That is why the industry’s role is not limited to the formal fulfillment of contracts. Every settled claim means a restored enterprise, preserved jobs, and taxes that continue to flow into the state budget. The market and business are on the same side here: the shared objective is to ensure that Ukrainian companies can continue to operate, rebuild, and plan for the future despite the circumstances.

Protection Works and Covers an Increasing Number of Industries

The basic scope of coverage has remained stable since 2022. Policies compensate for losses resulting from direct hits by missiles and attack drones and their fragments, damage caused by the operation of air defense systems, as well as related destruction caused by fires, explosions, and blast waves.

In the first half of 2026, insurance companies paid UAH 176.5 million in compensation to clients, including UAH 129.4 million in the second quarter compared with UAH 47.1 million in the first quarter. This confirms that the claims settlement mechanism has been established and operates in real time.

The product matrix has also expanded significantly. For the first time, war risk insurance contracts were recorded in the “Liability” and “Financial Risks” segments. Life insurers are increasingly integrating war risks into savings programs, with the portfolio of such new contracts exceeding 5,000 policies. The logistics sector continues to maintain flexible coverage: the insurer’s liability applies not only during transportation but also during temporary storage or transshipment periods of up to 45 days, which is critically important for companies engaged in foreign economic activities.

Another significant achievement has been the industry’s readiness to work with renewable energy facilities — solar and wind power plants, as well as industrial battery energy storage systems (BESS). This represents a direct contribution by the insurance market to the resilience of the country’s energy system.

A significant driver of accessibility remains the government compensation program under which businesses pay only 1% of the insurance premium. Its impact is measurable: the number of corporate contracts with individual risk assessment increased from 99 at the end of the first quarter to 228 at the end of June. For large businesses, the program has genuinely unlocked access to insurance protection.

Reserves Have Been Established, International Support Is Growing

For the first time, PRIMA participants disclosed the amount of reserves for reported but not yet paid claims. It amounts to approximately UAH 977 million, of which UAH 898 million relates to damaged property. These are funds that insurers have already accumulated to cover future compensation for events that have already occurred, confirming the financial discipline of the market and its readiness to meet its obligations.

Ukrainian insurance companies play a key role in this system. They underwrite each individual facility, assess risks on site, structure the coverage, support the client, and settle claims. Working with large corporate facilities effectively makes standardized solutions impossible, and half of the agreements in the property segment require a detailed assessment of threats and a specific evaluation of the location. This expertise, developed by Ukrainian underwriters under unique conditions, makes the very existence of the market possible.

At the same time, the scale of the risks requires international support, and this support is strengthening. The consolidated limit of the London-based Lloyd’s market increased almost twofold during the quarter, from approximately USD 350 million to USD 600 million. Significant support is provided by institutional partners: the DFC, with capacity exceeding USD 125 million, and the EBRD, with a limit of approximately USD 110 million. The growth of these limits demonstrates the global market’s confidence in the quality of Ukrainian underwriting.

Together with insurers, the National Association of Insurers of Ukraine continues systematic work with international partners to ensure the preservation and development of reinsurance capacity for Ukraine on terms that correspond to the actual level of risk.

Insurance Protection Is Most Effective When Combined with Risk Management

The experience of the first half of the year makes it possible to formulate practical guidelines for businesses.

The cost of a policy should be assessed in relation to the value of potential losses. The average premium for a corporate contract with an individual risk assessment is approximately UAH 3.3 million; however, this is an average statistical indicator rather than a fixed tariff. The actual price is determined individually and depends on the configuration of the facility, the stated liability limit, and the range of risks covered. Compared with the cost of restoring a warehouse complex or replacing a large shipment of goods, which may amount to hundreds of millions of hryvnias, the insurance premium represents a reasonable investment in a company’s resilience.

At the same time, insurance produces the best results when a business simultaneously works to reduce its own risks. Practice has identified several key areas:

Geographic decentralization. Relocating warehouses and production facilities to safer regions ensures operational continuity and significantly improves insurance conditions — lower rates and broader coverage.

Distribution of inventories across locations. Storing critical inventories, raw materials, and equipment at several sites reduces the likelihood of a total loss resulting from a single incident.

Duplication of production and logistics chains. Alternative suppliers, routes, and contractors reduce downtime if the primary link in the chain becomes unavailable.

Engineering protection of facilities. Shelters, fire protection systems, protection of server rooms, and backup power supplies reduce the scale of potential damage and are positively taken into account during underwriting.

Documentation backup. Inventory records, supporting documents, and photographs documenting the condition of property, stored outside the primary location, can significantly accelerate the claims settlement process.

Regular review of insured amounts and limits. The value of assets and the structure of a business change over time, so a contract concluded a year ago may no longer correspond to the actual level of risk.

Companies that do not yet have insurance protection should consider addressing this issue in advance, under normal conditions, with sufficient time to select the optimal coverage configuration.

The National Association of Insurers of Ukraine confirms its readiness to communicate directly with entrepreneurs: to discuss the specific needs of each business and the opportunities that the insurance market is capable of offering today.