It is explained that the United Arab Emirates is a major regional hub for logistics, energy, and re-exports, which means any disruption to shipping routes in the region directly impacts the level of interest in war risks and related marine insurance coverage. He added that what the market is currently experiencing is a significant increase in risk awareness and a repricing of these risks.Amid rising geopolitical tensions in the Middle East and the direct pressure they exert on global trade, the war risk insurance sector in the UAE has emerged as the first line of defense against escalating risks, given the country's status as a key hub for logistics, energy, and re-exports.Experts and insurance brokers confirmed to 'Al-Khaleej' that the market is undergoing a fundamental transformation reflected in the rising premiums for war risk insurance, which have jumped from 0.25% to nearly 3% of the vessel's hull value.Analyses by Crowe UAE, a firm specializing in audit, tax, and consulting, confirm that war risk insurance has demonstrated resilience in dealing with recent developments, benefiting from the strength of the UAE's regulatory framework and high levels of financial solvency.The report states that war risk insurance premiums for vessels and oil tankers transiting the Strait of Hormuz increased from 0.2% to 1% of the vessel's value within 48 hours of the peak of geopolitical tensions in the region. This means the cost of comprehensive insurance for a $100 million oil tanker could rise from $200,000 to $1 million.
Risk AwarenessAli Firdous Latif, Chief Executive Officer - Health at Salama Insurance, confirmed that current geopolitical tensions have increased the importance of war risk insurance in the UAE, particularly in branches related to marine insurance and trade.He pointed to recent reports indicating a significant increase in war risk premiums in the Gulf, which in some cases rose from around 0.25% of the vessel's hull value to nearly 3%, with some coverages being cancelled or completely repriced.
Increased DemandBassam Jelmiran, an insurance consultant, confirmed that the war risk insurance market in the UAE has entered a phase of strategic restructuring rather than just traditional growth.He noted that the current demand for war risk insurance in the UAE is showing a marked increase, with a qualitative change in its nature: it was previously limited to specific cases, whereas today it is shifting towards continuous coverage.
