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UAE, GCC see surge in demand for war-related insurance after regional conflict
Following recent regional conflict, demand for war-related insurance has skyrocketed as businesses and individuals are seeking protection for properties, vehicles, and supply chains
- PUBLISHED: Mon 18 May 2026, 6:00 AM UPDATED: Mon 18 May 2026, 8:27 AM
[Editor's Note: Follow the Khaleej Times live blog for the latest regional developments with the US-Israel-Iran ceasefire now in effect.]
Demand for war risk and political violence insurance has risen sharply across the UAE and Gulf region as businesses and individuals seek protection against growing geopolitical uncertainty following the regional war.
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Insurance industry executives said enquiries for such policies have increased significantly over the past few months, with premiums also rising for coverage related to commercial properties, residential units and motor vehicles.
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The US and Israel launched attacks against Iran on February 28, targeting its political and military leadership as well as key military installations. In response, Iran launched drones and missiles towards several Gulf countries, raising concerns among residents and businesses across the region.
“We are seeing growing awareness and demand for enhanced protection solutions across the UAE and the wider GCC region. Businesses today are placing greater emphasis on supply chain resilience, operational continuity and proactive risk management,” said Omer Elamin, president of Orient Insurance Group.
“At the same time, individuals are also becoming more conscious of the importance of comprehensive protection for their homes and vehicles,” he added.
Wider coverage
Hitesh Motwani, deputy CEO of Insurancemarket, also confirmed a sharp rise in demand across the UAE and other Gulf countries, driven mainly by heightened awareness and the need for broader protection.
“Over the past couple of months, with evolving regional dynamics, we have seen a significant increase in enquiries, in some cases multiple times higher than usual. Customers are now more conscious of protection beyond traditional risks and are actively exploring these covers,” Motwani said.
Traditionally, standalone political violence insurance has mainly been used by businesses to protect physical assets such as warehouses, offices, factories and infrastructure against damage caused by war, terrorism, riots or civil unrest.
However, insurers are now increasingly looking at incorporating such risks into existing policies as optional add-ons, making coverage more accessible to a wider customer base.
“What we are now seeing is insurers also exploring ways to integrate this risk as an add-on or extension to existing policies, allowing customers to enhance their coverage rather than purchasing separate standalone products,” Motwani added.
According to insurance executives, demand remains strongest among large corporates involved in trade, shipping, logistics and regional operations due to their exposure to supply chain disruptions and operational risks.
However, interest is also growing among small and medium-sized enterprises (SMEs), particularly businesses engaged in importing, exporting and distribution activities.
Elamin said the UAE’s role as a global trade and logistics hub has resulted in particularly strong interest in marine cargo, inland transit and trade-related insurance solutions.
“There is also growing interest in political violence coverage for personal vehicles and residential units, as customers increasingly seek broader and more comprehensive protection solutions beyond traditional insurance products,” he said.
Insurance companies are also broadening their product offerings to address the increasing demand.
Orient Insurance recently expanded its portfolio to include marine war-on-land risk, marine cargo war risks and political violence coverage for personal vehicles and residential properties.
“As trade activity expands, businesses and residents are increasingly seeking more comprehensive protection solutions that support continuity, resilience and confidence,” Elamin said.
Motwani noted that awareness is no longer limited to large organisations.
“At the same time, we are also seeing enquiries from individual customers, especially property owners and motor insurance customers who are becoming more aware of these risks. This indicates that awareness is gradually filtering down to a wider customer base,” he said.
Premiums
Industry executives added that premiums for standalone political violence insurance have increased in line with the changing risk environment.
According to Motwani, pricing depends on factors such as location, exposure and the level of coverage required.
“As a general indication, standalone political violence insurance can range from 2.5 per cent to 4 per cent of the insured value, depending on the risk profile. For example, coverage of $2 million could translate into a premium of around $50,000, subject to underwriting terms,” he said.
For motor insurance, the additional cost is relatively lower, generally ranging between 0.25 per cent and 0.50 per cent of the vehicle value.
“While premiums have adjusted to reflect the risk environment, the market remains responsive, with insurers working to provide options that balance protection with affordability,” Motwani added.
