On May 21, the Ministry of Foreign Affairs of Ukraine announced a tender for voluntary insurance of motor vehicles and compulsory insurance of civil liability of owners of land vehicles, according to the electronic state procurement system Prozorro.
The expected cost of purchase of services is UAH 342,898 thousand.
The deadline for submission of tender documents is May 29.
AUTO, INSURANCE, MINISTRY OF FOREIGN AFFAIRS, TENDER, UKRAINE
From mid-May, the Austrian Ministry of Finance and the Austrian export credit agency OeKB (Oesterreichische Kontrollbank Aktiengesellschaft) will start accepting applications for export and investment insurance in Ukraine at the expense of a special fund for Ukraine created by the Ministry of Finance in OeKB through the budget law.
According to the Austrian agency’s press release, it is expected that EUR500 million will be allocated to cover operations in Ukraine over the next five years, and the attraction of funds from international financial institutions could make it possible to receive up to EUR1 billion.
“Approximately EUR100 million per year is earmarked for new business. This will also open up opportunities for Austrian exporters in the process of Ukraine’s recovery,” the Ministry of Finance said in a release.
It is indicated that as part of the existing and proven export promotion procedure, the Ministry of Finance is already facilitating export transactions worth EUR 3-5 million in Ukraine with payment terms of up to three years through OeKB.
It is noted that since funds are limited and the goal is to achieve a wide diversification of risks, in particular in the supported sectors, small and medium-sized public sector transactions based on a state guarantee will be possible at the first stage.
“This will allow us to make vital investments for Ukraine. These include the supply of drinking water and heat, the provision and rehabilitation of the transport sector with roads, bridges and rail infrastructure, as well as supply agreements and investments such as joint repair shops for buses, trams and trains,” commented Finance Minister Magnus Brunner.
On May 15, the state enterprise Delta-Lotsman (Mykolaiv) announced a tender for voluntary insurance of liability to third parties for maritime accidents caused by the fault of marine pilots, pilot-operators of the insured’s vessel traffic control service in the performance of their official duties.
According to the electronic public procurement system ProZorro, the expected cost of the service is UAH 1.171 million. The tender security is an electronic guarantee of UAH 35 thousand.
The deadline for submission of bids is May 24.
SE “Delta Pilot” was established by order of the Ministry of Transport of Ukraine in 1998 in order to improve conditions for ensuring safety of navigation, protection of human life at sea and the environment, in the territorial sea of Ukraine in accordance with the requirements of international agreements and conventions, streamlining the structure of marine pilot services in the north-western part of the Black Sea.
Insurance group “TAS” (Kiev) in March 2024 attracted UAH 291.27 mln of insurance premiums under the concluded insurance contracts, which is 68% higher than the volume of payments collected by the company for the same period last year.
According to the insurer’s website, the volume of CASCO sales increased by 46.1% to UAH 57.39 mln of payments, which is 19.7% of the total amount of March premiums, MTPL – by 42% to UAH 90.54 mln or 31.1% of the total volume, Green Card – by 2.4 times to UAH 112.5 mln or 38.6% of the total volume.
Besides, the volumes of collections under property insurance contracts have grown by 29,3% – the company has attracted UAH 4,94 mln of payments under them in March.
Under contracts of voluntary medical insurance the company for the first month of spring 2024 collected UAH 2.73 million of payments, under other insurance contracts – UAH 23.21 million, which is 48.9% more than in the past.
As reported, in March the company paid out UAH 157.08 million – it is by 38.6% more indemnities of the company compared to March a year earlier. At the same time, a quarter of payments of the insurer for the reporting period (25,39%) came to CASCO – UAH 39,88 mln (+23,1%), MTPL – 34,48% of the volume of payments – UAH 54,16 mln (+14%), “Green Card” – 23,04%, or UAH 36,19 mln (+86,2%).
At the same time, the volume of payments under VHI has grown in 2,47 times, up to UAH 22,83 mln, that is equal to 14,54% of the total amount of payments of the company following the results of the reporting period. Under other insurance contracts the company’s payouts following the results of March totaled UAH 4,02 mln.
IG “TAS” was registered in 1998. It is a universal company offering its clients more than 80 types of insurance products on various types of voluntary and compulsory insurance. It has an extensive regional network: 28 regional directorates and branches and 450 sales offices throughout Ukraine.
State enterprise “NAEK Energoatom” on April 16 reported that IC “Mega-Policy” was recognized as the winner of the tender for insurance of liability for high-risk facilities, for damage that may be caused as a result of emergencies.
As reported in the system of electronic public procurement Prozorro, the expected cost -139,515 thousand UAH, the company’s price offer of 79,520 thousand UAH.
IC “Industrial Insurance Company” also took part in the tender with the offer of UAH 41,7 thousand.
As it was informed, IC Mega-Policy was registered in 2000, specializing in risk insurance.
The Unity Facility insurance mechanism for grain transportation by Ukrainian sea corridor, announced in mid-November 2023, has been extended to ships carrying not only grain but any other cargoes from February 2024, Oliver Wyman partner Crispin Ellison said.
“By combining the efforts of the industry and the government, we’ve been able to create a mechanism (facility) where prices are well under half of those in the normal commercial market. And now, this month, February, we’ve expanded that facility to include transportation of all cargoes, not just grain,” he said at a Wednesday webinar on political risk insurance organized by the U.S.-Ukraine Business Council (USUBC) and the U.S. Department of Commerce.
He said this will be formally announced on Friday, but the option is already available and effectively triples the mechanism.
Ellison recalled that after Russia withdrew from the Black Sea Grain Initiative, insurance rates increased for the military risk element alone to about 5%, which was completely unaffordable and led to a halt in shipping in July and August.
Established using a public-private partnership (PPP) in which the Ukrainian government provided a $20 million reimbursement fund, the Unity Facility insures approximately 1,000 vessels per year with a maximum insured value of $50 million for each vessel, supporting the export of approximately 30 million tons of grain. The reimbursement fund is accessed through a letter of credit with Ukrainian banks and DZ Bank.
According to Ellison’s submission, a parallel mechanism for cargo coverage, supported by EBRD financing for the Ukrainian government, is being considered.
The expert emphasized that the relatively small amount of insurance capital allowed exporting goods worth about $20 billion, and its estimate is 6-8% of Ukraine’s GDP.
As reported, the Unity Facility was created with the support of the UK government, international reinsurance broker Marsh McLennan and over a dozen more British insurance companies.
According to the Ministry of Restoration, the sea corridor created by the Navy of the AFU and the Danube since August 2023 provided for the export of almost 26 million tons of cargo, of which more than 18 million tons – the products of Ukrainian agrarians. It was specified that from the ports of “Greater Odessa” 854 ships were sent to 42 countries.
