{"id":42579,"date":"2026-05-18T07:38:26","date_gmt":"2026-05-18T07:38:26","guid":{"rendered":"https:\/\/insider18.com\/?p=42579"},"modified":"2026-05-18T08:07:09","modified_gmt":"2026-05-18T08:07:09","slug":"uae-and-gcc-experience-growing-demand-for-conflict-insurance-following-regional-unrest","status":"publish","type":"post","link":"https:\/\/insider18.com\/index.php\/2026\/05\/18\/uae-and-gcc-experience-growing-demand-for-conflict-insurance-following-regional-unrest\/","title":{"rendered":"UAE and GCC experience growing demand for conflict insurance following regional unrest."},"content":{"rendered":"\t\t
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In the wake of heightened regional instability, insurance providers across the United Arab Emirates and the wider Gulf Cooperation Council (GCC) have reported a sharp increase in demand for coverage linked to war risk and political violence. This surge has been driven by growing concern among both businesses and private individuals who are increasingly looking for financial safeguards against potential disruptions caused by geopolitical tensions in the region.<\/p>

Industry professionals note that enquiries for such specialised insurance products have risen significantly over recent months. The heightened interest reflects a broader shift in risk perception, as companies and households reassess their exposure to uncertainties stemming from ongoing regional developments. Alongside this rise in demand, insurers have also observed an upward adjustment in premiums, particularly for policies covering commercial real estate, residential properties, and motor vehicles. This trend indicates that underwriters are factoring in a higher level of perceived risk when pricing coverage in the current environment.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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The escalation in interest for war-related insurance comes against the backdrop of a series of geopolitical events that have heightened anxiety across the region. Earlier this year, military strikes carried out by the United States and Israel targeted areas in Iran, including sites associated with political and military leadership as well as key strategic installations. These actions contributed to an already tense regional climate, further intensifying concerns about potential spillover effects.<\/p>

In response to these developments, Iran reportedly launched drone and missile operations directed toward several Gulf countries. Although the extent of damage varied across locations, the incidents were enough to raise alarm among governments, residents, and businesses throughout the region. The possibility of escalation created an environment of uncertainty, prompting organisations and individuals to evaluate how such risks could affect their assets, operations, and long-term stability.<\/p>

Insurance sector executives have highlighted that this shift in sentiment is not limited to large corporations alone. Instead, there is a noticeable increase in interest from a wide range of policyholders, including small and medium-sized enterprises as well as individual property owners. Many are now seeking more comprehensive protection packages that extend beyond standard coverage to include scenarios involving conflict-related damage or political unrest.<\/p>

According to senior industry figures, this growing awareness reflects a broader evolution in how risk is being understood and managed in the region. Companies are increasingly prioritising resilience in their operations, particularly with regard to maintaining supply chain continuity and ensuring business continuity in the face of unexpected disruptions. As global trade and regional logistics become more interconnected, even localized tensions can have wider implications, reinforcing the need for robust insurance strategies.<\/p>

One senior voice in the industry, Omer Elamin, president of Orient Insurance Group, noted that the current environment has led to a measurable increase in demand for more advanced protection solutions. He explained that businesses operating in the UAE and across the GCC are now placing greater emphasis on preparing for a wider range of potential risks. This includes not only traditional commercial risks but also those linked to geopolitical instability and regional conflict scenarios.<\/p>

Elamin further pointed out that this trend is not confined to corporate entities alone. Individuals, too, are becoming increasingly aware of the importance of securing adequate insurance coverage. Homeowners, tenants, and vehicle owners are now more inclined to consider comprehensive policies that provide protection against unforeseen events that may arise from regional instability. This growing consciousness reflects a broader cultural shift toward proactive financial planning and risk mitigation.<\/p>

The insurance industry has responded by expanding and adapting its product offerings to meet this evolving demand. Providers are reassessing their risk models, updating policy structures, and in some cases introducing new coverage options tailored specifically to conflict-related risks. At the same time, reinsurers are also playing a critical role in supporting the market by absorbing part of the elevated risk exposure associated with these developments.<\/p>

Analysts suggest that while the current spike in demand is closely tied to recent geopolitical events, it may also have longer-term implications for the insurance landscape in the Gulf region. As awareness of political and security risks continues to grow, demand for specialised coverage is likely to remain elevated, potentially reshaping how insurers design and price their products in the future.<\/p>

Overall, the situation reflects a broader reality in which regional instability is influencing financial decision-making across multiple sectors. Whether through corporate risk management strategies or individual insurance choices, stakeholders across the UAE and GCC are increasingly seeking ways to protect themselves from the economic consequences of uncertainty, reinforcing the importance of insurance as a critical tool for resilience in an unpredictable environment.<\/p><\/div><\/div><\/div><\/div><\/div><\/div><\/section><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Wider coverage<\/h3>

Hitesh Motwani, Deputy Chief Executive Officer of Insurancemarket, has also observed a clear and notable increase in demand for insurance products across the UAE as well as other Gulf Cooperation Council markets. He attributed this upward trend primarily to rising awareness among customers and a stronger desire for more comprehensive forms of financial protection in light of changing regional conditions.<\/p>

According to Motwani, the past few months have seen a significant shift in customer behaviour. With geopolitical developments in the region evolving rapidly, enquiries for insurance coverage linked to conflict and political risk have surged. In some cases, the number of inquiries has multiplied several times compared to typical levels. He explained that individuals and businesses are no longer focusing only on conventional insurance needs but are increasingly considering broader scenarios that could affect their assets and operations.<\/p>

He added that this change reflects a growing understanding among customers that standard insurance policies may not always be sufficient to cover all types of risk exposure. As a result, many are actively exploring additional coverage options that address risks such as political instability, civil unrest, and other forms of disruption that fall outside traditional policy frameworks.<\/p>

Historically, standalone political violence insurance has primarily been purchased by corporate clients. These policies were generally designed to safeguard physical assets, including warehouses, commercial offices, manufacturing facilities, and critical infrastructure. Coverage typically extended to losses or damage caused by events such as war, acts of terrorism, riots, strikes, and civil disturbances.<\/p>

However, the structure of such insurance products is beginning to evolve. Insurers are increasingly moving toward integrating these risks into existing policy frameworks rather than offering them solely as separate standalone products. This shift is aimed at making such coverage more accessible and flexible for a broader range of customers.<\/p>

Motwani explained that one of the key developments in the market is the growing trend of offering political violence or war-risk protection as optional add-ons to standard insurance policies. This allows customers to enhance their existing coverage without needing to purchase entirely separate and often more complex insurance products. In his view, this approach not only simplifies the purchasing process but also encourages wider adoption among both corporate and individual clients.<\/p>

Industry participants have noted that the strongest demand continues to come from large corporations, particularly those operating in sectors such as international trade, shipping, logistics, and regional distribution networks. These industries are especially sensitive to disruptions caused by geopolitical tensions, as their operations are heavily dependent on smooth supply chain movement across borders.<\/p>

Hitesh Motwani, Deputy Chief Executive Officer of Insurancemarket, has also observed a clear and notable increase in demand for insurance products across the UAE as well as other Gulf Cooperation Council markets. He attributed this upward trend primarily to rising awareness among customers and a stronger desire for more comprehensive forms of financial protection in light of changing regional conditions.<\/p>

According to Motwani, the past few months have seen a significant shift in customer behaviour. With geopolitical developments in the region evolving rapidly, enquiries for insurance coverage linked to conflict and political risk have surged. In some cases, the number of inquiries has multiplied several times compared to typical levels. He explained that individuals and businesses are no longer focusing only on conventional insurance needs but are increasingly considering broader scenarios that could affect their assets and operations.<\/p>

He added that this change reflects a growing understanding among customers that standard insurance policies may not always be sufficient to cover all types of risk exposure. As a result, many are actively exploring additional coverage options that address risks such as political instability, civil unrest, and other forms of disruption that fall outside traditional policy frameworks.<\/p>

Historically, standalone political violence insurance has primarily been purchased by corporate clients. These policies were generally designed to safeguard physical assets, including warehouses, commercial offices, manufacturing facilities, and critical infrastructure. Coverage typically extended to losses or damage caused by events such as war, acts of terrorism, riots, strikes, and civil disturbances.<\/p>

However, the structure of such insurance products is beginning to evolve. Insurers are increasingly moving toward integrating these risks into existing policy frameworks rather than offering them solely as separate standalone products. This shift is aimed at making such coverage more accessible and flexible for a broader range of customers.<\/p>

Motwani explained that one of the key developments in the market is the growing trend of offering political violence or war-risk protection as optional add-ons to standard insurance policies. This allows customers to enhance their existing coverage without needing to purchase entirely separate and often more complex insurance products. In his view, this approach not only simplifies the purchasing process but also encourages wider adoption among both corporate and individual clients.<\/p>

Industry participants have noted that the strongest demand continues to come from large corporations, particularly those operating in sectors such as international trade, shipping, logistics, and regional distribution networks. These industries are especially sensitive to disruptions caused by geopolitical tensions, as their operations are heavily dependent on smooth supply chain movement across borders.<\/p>

For such companies, even minor interruptions in regional stability can lead to significant operational and financial challenges. As a result, many are prioritising insurance solutions that help mitigate risks associated with delays, transport interruptions, and damage to goods or infrastructure. This has led to increased interest in specialised policies that provide protection against politically driven disruptions.<\/p>

At the same time, there is a growing wave of interest from small and medium-sized enterprises (SMEs) as well. These businesses, particularly those involved in import-export activities, wholesale distribution, and regional trading, are becoming more aware of the potential impact that instability can have on their operations. As SMEs play a vital role in the region\u2019s economic ecosystem, their rising demand for protection reflects a broader shift in risk awareness across different business segments.<\/p>

Hitesh Motwani highlighted that the UAE\u2019s strategic position as a global trade and logistics hub has further amplified demand for insurance solutions related to cargo movement and transportation. He pointed out that products such as marine cargo insurance, inland transit coverage, and trade-related risk protection have seen particularly strong interest. These forms of insurance are becoming increasingly important in safeguarding goods as they move through complex international supply chains.<\/p>

In addition to corporate demand, insurers are also witnessing a gradual rise in interest from individual customers. This includes property owners and motor insurance clients who are becoming more conscious of the potential risks associated with regional instability. Many are now seeking broader protection for personal assets, including residential properties and vehicles, especially in light of recent events that have heightened public awareness.<\/p>

Motwani noted that this trend represents an important shift, as awareness of political and conflict-related risks is no longer confined to large organisations or institutional clients. Instead, it is steadily extending to retail customers, indicating a widening understanding of insurance as a tool for financial resilience.<\/p>

Insurance providers have responded to these developments by expanding their product offerings and adapting their coverage structures. For example, Orient Insurance has recently enhanced its portfolio to include products such as marine war-on-land coverage, war-risk protection for cargo shipments, and political violence insurance extensions for both vehicles and residential properties.<\/p>

This expansion reflects a broader industry effort to align insurance products with evolving customer needs. As trade activity in the region continues to grow and economies remain interconnected, insurers are placing greater emphasis on designing solutions that support continuity, stability, and confidence for both businesses and individuals.<\/p>

Industry executives, including Elamin, have also stressed that the demand for such protection is not expected to diminish in the near term. Instead, it is likely to remain steady or even increase as awareness continues to spread and geopolitical uncertainty persists. Businesses, in particular, are focusing more on resilience planning, ensuring that they are prepared for a wide range of potential disruptions.<\/p>

Elamin further noted that the growing complexity of global supply chains has made risk management an essential part of business strategy. As a result, companies are increasingly relying on insurance products not only as a safety net but also as a key component of operational planning.<\/p>

Overall, the evolving landscape indicates a clear transformation in how both businesses and individuals perceive risk in the region. What was once considered a niche area of insurance is now becoming a more mainstream concern, shaping product innovation and driving growth across the insurance sector in the UAE and wider Gulf region.<\/p><\/div><\/div><\/div><\/div><\/div><\/div><\/section><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Premiums<\/h3>

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Insurance industry professionals have noted that premiums for standalone political violence coverage have risen in response to the evolving security and geopolitical landscape in the region. The adjustment in pricing reflects insurers\u2019 reassessment of risk exposure as uncertainty increases, particularly in areas considered more sensitive to potential conflict-related disruptions.<\/p>

Hitesh Motwani explained that the cost of such insurance is not fixed and can vary significantly based on several underwriting considerations. He said that insurers typically evaluate a combination of factors before determining the final premium. These include the geographic location of the insured asset, the level of perceived risk in that area, the nature of the insured property or business activity, and the extent of coverage being requested by the client. Each of these elements plays a role in shaping the overall pricing structure.<\/p>

He further clarified that, as a broad reference point, standalone political violence insurance is generally priced between 2.5 percent and 4 percent of the total insured value. This range is not absolute, but it provides an indication of how insurers are currently assessing risk in the present environment. The final rate may be adjusted upward or downward depending on specific risk assessments carried out during underwriting.<\/p>

To illustrate how this works in practice, Motwani provided an example: if a business seeks coverage worth approximately 2 million US dollars, the premium could be in the vicinity of 50,000 dollars. However, he stressed that this figure is only an estimate and would ultimately depend on detailed underwriting criteria, policy structure, and the risk appetite of the insurer at the time of issuance.<\/p>

The pricing structure for motor insurance policies that include political violence or war-related add-ons is comparatively lower. In most cases, the additional premium charged for such coverage is typically between 0.25 percent and 0.50 percent of the insured vehicle\u2019s value. This reflects the relatively smaller exposure associated with individual vehicles compared to large-scale commercial or industrial assets.<\/p>

Industry experts have pointed out that while there has been a noticeable increase in premiums, the insurance market remains flexible and responsive to customer needs. Insurers are actively trying to strike a balance between accurately reflecting the heightened risk environment and ensuring that coverage remains accessible to a broad range of clients, including both corporate entities and individual policyholders.<\/p>

Motwani emphasized that insurers are mindful of maintaining affordability, even as they adjust pricing to account for emerging risks. He explained that the goal is not only to protect insurers from excessive exposure but also to ensure that customers continue to have viable options for securing adequate protection against potential losses.<\/p>

The broader insurance sector is therefore working on refining its pricing models, taking into account evolving geopolitical conditions while also considering long-term sustainability. This involves continuous monitoring of regional developments, reassessment of risk zones, and regular updates to underwriting guidelines.<\/p>

At the same time, insurers are exploring more tailored solutions that can better align with different levels of customer risk tolerance. Instead of applying a one-size-fits-all approach, many companies are now offering more flexible structures that allow clients to choose varying degrees of coverage based on their specific needs and financial capacity.<\/p>

This approach has become increasingly important in the current environment, where uncertainty has led to greater demand for protection but also heightened sensitivity to cost. Businesses and individuals alike are seeking ways to safeguard their assets without incurring disproportionately high insurance expenses.<\/p>

Overall, the market is experiencing a period of adjustment, where pricing, product design, and risk assessment practices are all being recalibrated. While premiums for political violence insurance have risen, insurers continue to focus on maintaining a sustainable balance between risk coverage and affordability, ensuring that protection remains available even as conditions evolve.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Following recent regional tensions, the UAE and other GCC countries have seen a notable increase in demand for war-risk and conflict insurance coverage as businesses and investors seek greater financial protection.<\/p>\n","protected":false},"author":1,"featured_media":42580,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"pmpro_default_level":"","footnotes":""},"categories":[9],"tags":[],"post_template":[],"top_category":[],"class_list":["post-42579","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uae","pmpro-has-access"],"acf":[],"_links":{"self":[{"href":"https:\/\/insider18.com\/index.php\/wp-json\/wp\/v2\/posts\/42579","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/insider18.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insider18.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insider18.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/insider18.com\/index.php\/wp-json\/wp\/v2\/comments?post=42579"}],"version-history":[{"count":4,"href":"https:\/\/insider18.com\/index.php\/wp-json\/wp\/v2\/posts\/42579\/revisions"}],"predecessor-version":[{"id":42587,"href":"https:\/\/insider18.com\/index.php\/wp-json\/wp\/v2\/posts\/42579\/revisions\/42587"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/insider18.com\/index.php\/wp-json\/wp\/v2\/media\/42580"}],"wp:attachment":[{"href":"https:\/\/insider18.com\/index.php\/wp-json\/wp\/v2\/media?parent=42579"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insider18.com\/index.php\/wp-json\/wp\/v2\/categories?post=42579"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insider18.com\/index.php\/wp-json\/wp\/v2\/tags?post=42579"},{"taxonomy":"post_template","embeddable":true,"href":"https:\/\/insider18.com\/index.php\/wp-json\/wp\/v2\/post_template?post=42579"},{"taxonomy":"top_category","embeddable":true,"href":"https:\/\/insider18.com\/index.php\/wp-json\/wp\/v2\/top_category?post=42579"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}