EU Approves Poland’s Allocation of 6.4 Billion PLN for Export Insurance to Ukraine

The European Commission has approved Poland’s plan to allocate 6.4 billion PLN in public funding for reinsurance of transport insurance within Ukraine. This initiative aims to assist transport companies delivering goods to a country facing a Russian invasion.

Poland’s public assistance program, which requires approval from the European Commission, allows the Export Credit Insurance Corporation (KUKE) to provide reinsurance for risks associated with the war, including damages from military activities, sabotage, terrorism, uprisings, or riots.

The primary beneficiaries of this support will be insurance companies based in Poland, while transport companies supplying goods to Ukraine will receive indirect benefits.

The European Commission noted in a press release on Friday that this program addresses a market deficiency in insuring transport companies against risks related to the ongoing Russian military aggression in Ukraine.

The financial support will be structured as state treasury-backed reinsurance, with KUKE assuming 80% of the war-related risks and the insurance companies taking on the remaining 20%. Under the Polish program, insurance companies will pay KUKE an appropriate premium for the risk after deducting fees for acquisition and administrative costs, ensuring consistent risk assessment and pricing.

It is important to note that this support does not extend to standard commercial risks.

The program will remain in effect until June 30, 2027.


Comments

2 responses to “EU Approves Poland’s Allocation of 6.4 Billion PLN for Export Insurance to Ukraine”

  1. Mother 
Hen Avatar
    Mother Hen

    Just what we needed, another generous helping of public funds to keep the insurance folks fat and happy while they gamble on Ukraine’s transport woes. 🍻 Who knew a war could be such a lucrative business model? 🙄

  2. flyswat briggs Avatar
    flyswat briggs

    Oh brilliant, just what we needed—a generous 6.4 billion PLN bail-out for insurance companies while the transport firms are left with the crumbs. I suppose at least someone will be cashing in while dodging missiles. 💸🚚

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