The economic and legal aspects of the development of war risk insurance

Abstract

The relevance of the study is driven by the urgent need to ensure the continuity of economic activity and attract investments into Ukraineʼs economy under martial law, which requires the formation of an effective institution of war risk insurance beyond the classical force majeure concept. The research is based on the hypothesis that effective war risk insurance cannot exist as a purely commercial agreement between private entities, but requires an institutional public-private partnership where the state acts as a regulator, co-investor, and guarantor. The methodology for testing the hypothesis is based on a combination of formal-legal analysis of the domestic regulatory framework, the comparative legal method for juxtaposition with the practice of international institutions (MIGA/DFC), and a systemic-structural approach to studying the dual economic and legal nature of war risks. Based on the results of the study, the systemic failure of purely private-law underwriting, manifested in high tariffs and discriminatory territorial exclusions, has been proven. The necessity of implementing a three-level model of joint responsibility (local insurers – state pool – international organizations) is substantiated. It is established that to transform the military factor into an insurable business case, the adoption of the Law of Ukraine "On the System of Insurance of Military and Political Risks" is critically necessary. This will overcome the definitive vacuum of the transitional period, normatively institutionalize the National Pool of Reinsurance of Military Risks, establish clear limits of state responsibility, and unify the rules for providing insurance services to businesses.