War-risk insurance is now available for everyday consumers in the UAE, with insurers offering new policies for cars, cargo, and travel. According to reports from The Economic Times, Dubai-headquarters Sukoon Insurance recently launched a 'Motor War Cover' add-on for comprehensive vehicle policyholders, offering protection of up to AED 5 million against direct physical damage arising from war, strikes, terrorism, and riots within the UAE. This marks a first for the UAE retail motor insurance market, as war-risk insurance traditionally remained confined to global shipping and aviation sectors. The expansion has been further enhanced with new products including Political Violence, including War, for Personal Vehicles and Political Violence, including War, for Residential Units, providing comprehensive coverage for privately owned vehicles and homeowners against damage from war, terrorism, sabotage, strikes and riots. As per Gulf News, UAE residents can now obtain war risk cover for homes, cars and cargo, with rental properties also requiring war clauses in contracts to protect tenants during the current crisis.
The expansion comes as the UAE has been dealing with more than 500 missiles and 2,000 drones since February 28, according to reports from The Economic Times. The country bore the brunt of Iranian strikes on Gulf states, prompting insurers to transition war-risk insurance from a highly specialised corporate product into more accessible retail, SME and consumer-oriented solutions. As noted by Aftab Hasan, founder and chairman of Global Association of InsurTech Professionals (GAIP), this trend reflects broader regional risk perception driven by geopolitical tensions and supply-chain instability. Orient Insurance President Omer Elamin emphasized that "The UAE's economic ambitions are built on a foundation of confidence; confidence in our systems, our institutions, and our collective ability to manage risk effectively," while acknowledging that "as trade flows grow and the risk environment becomes increasingly complex, Orient is committed to ensuring businesses can operate without undue exposure."
Orient Insurance has introduced a comprehensive securities portfolio covering cargo transport, domestic freight, personal vehicles, and housing in the UAE, as reported by The Economic Times. The expanded offerings include Marine War on Land coverage, which protects cargo and goods exposed to war-related risks during inland transport routes, and Marine Cargo War Risks protection, specifically designed for maritime cargo shipments exposed to war-linked disruptions during sea transit. These products address the complex logistics chains that businesses operate across, including maritime transport, inland trucking, port handling and storage facilities. The company noted that businesses operating across international trade networks are under increased pressure to attain higher levels of protection against potential interruptions from standard insurance policies, with Gulf News reporting that businesses are severely hit by the present crisis requiring comprehensive war-risk protection.
UAE businesses are now reassessing whether conventional 'all-risk' insurance policies adequately protect them against geopolitical disruptions, supply-chain breakdowns and political violence, according to The Economic Times. Neeraj Gupta, CEO of Policybazaar UAE, reported a spike in marine cargo and war-risk related queries, with clients asking sharper questions about policy coverage gaps. Traditionally, war-risk insurance was quietly added as an extension to existing cargo policies, but businesses are now genuinely understanding their exposure rather than assuming coverage. As regional and global supply chains continue facing pressure from geopolitical uncertainty, companies are increasingly reviewing how exposed they may be to unexpected disruptions, particularly those operating across multiple transport stages involving ports, warehouses and road logistics. Gulf News highlights that war clauses should be included in rental contracts to protect tenants during the current situation, as businesses and tenants alike require comprehensive protection against war-linked risks.
