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War-risk insurance demand rises in UAE as regional tensions persist
Growing geopolitical uncertainty is driving demand for war-risk motor insurance in the UAE, prompting insurers to expand cover options for individuals and commercial fleets
- PUBLISHED: Tue 21 Jul 2026, 2:41 PM
Rising geopolitical tensions across the Middle East are prompting more motorists and businesses in the UAE to seek insurance protection against war-related risks, creating a new area of growth for insurers in a market where such cover has traditionally been difficult to obtain.
Industry executives say enquiries for war-risk coverage have increased as companies reassess their exposure to regional instability and potential disruptions to transportation assets. The trend is particularly evident among businesses that depend heavily on vehicle fleets, including logistics operators and corporate transport providers.
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Historically, war-related damage has been excluded from standard motor insurance policies, a limitation that attracted little attention during periods of relative regional stability. However, recent geopolitical developments have led insurers to explore specialised products that address changing customer concerns and risk perceptions.
Against this backdrop, GIG Gulf has expanded its motor insurance portfolio by introducing optional war cover for comprehensive personal motor policies and selected commercial fleet policies in the UAE. The insurer said customers can choose from three levels of protection, allowing both individuals and businesses to tailor coverage according to their needs and budgets.
“Real commitment means being there for the moments that matter most to our customers. That’s why we’ve added war cover to motor and fleet policies, giving people and businesses the peace of mind they deserve,” said Paul Adamson, CEO of GIG Gulf.
The company said the cover is available for selected commercial fleet policies, offering businesses access to protection that has not been widely available in the local market. Customers can add the cover when purchasing or renewing comprehensive motor insurance, while fleet operators can request it as part of their insurance arrangements. Existing policyholders can also enquire about adding the protection.
As regional risks remain in focus, insurance specialists expect more organisations to review their coverage needs, with demand for war-risk protection likely to remain a key theme across the motor insurance market.
