Demand for War-Risk Insurance Climbs in the UAE as Regional Tensions Persist

Demand for war-risk and political-violence insurance is rising in the UAE as renewed conflict in the region prompts businesses to reassess their exposures. Companies involved in shipping, aviation, logistics and property are increasingly seeking specialised cover that standard commercial policies typically exclude, as escalations between the United States and Iran raise the risk of disruption to trade routes and assets. War-risk insurance protects against losses arising from armed conflict, and its cost and availability tend to move sharply with geopolitical developments, particularly for vessels transiting sensitive waterways such as the Strait of Hormuz and the Red Sea. Insurers and brokers in the Gulf have reported greater inquiries and, in some cases, higher premiums as underwriters price in elevated uncertainty. The trend underscores how regional instability feeds directly into the cost of doing business, from freight and energy shipments to airline operations and large construction projects. For the UAE, a major trade and re-export hub, the availability and affordability of such cover is important to keeping commerce flowing. Risk managers are being urged to review policy wordings closely, since exclusions, geographic limits and waiting periods can significantly affect whether a claim is paid.