As tension escalates amidst the ongoing war in the Gulf, the General Arab Insurance Federation (GAIF) urges stakeholders to consider alternative solutions to strengthen the sector's capacity to deal with war risks.
GAIF, in cooperation with the Financial Services Institute—the training arm of the Financial Regulatory Authority (Egypt)—organised a virtual seminar on 1 April, titled “Geopolitical Developments and their Impact on the Insurance Industry.” The event brought together more than 500 experts and professionals from across the Arab world.
Opening the event, Mr Chakib Abouzaid, GAIF Secretary General, emphasised that the current crisis not only casts its shadow over Gulf countries but also extends to all Arab nations. He noted that the heaviest impact on the insurance sector fell on branches such as war risk, political violence, marine insurance and aviation insurance.
He noted that the World Economic Forum, in its report, “Global Risks Report 2026”, indicated that geoeconomic confrontation is top of mind for respondents and was selected as the top risk most likely to trigger a material global crisis in 2026. This is followed by state-based armed conflict.
Mr Abouzaid proposed exploring investment in alternative capital instruments such as war risk bonds, similar to catastrophe and cyber bonds, as a complement to the existing capacity in Arab markets.
Another speaker, Mr Yasser Albaharna, Group CEO and Managing Director of Trust International Insurance and Reinsurance Company, explained that insurance cancellations following the outbreak of the war on 28 February are normal procedures aimed at reassessing risks rather than a withdrawal from the market. He stressed that while marine coverage includes war risk, the take-up of which remains limited for non-marine property in Arab countries, except for major industrial facilities, highlighting the need to enhance insurance awareness to bridge this gap.
Dr Tarek Seif, Executive Director of the Financial Services Institute–Egypt, delivered a presentation on marine insurance and war and terrorism risks. He highlighted the absence of alternative navigation routes to the Strait of Hormuz. He also said that war risk can be triggered even in times of peace when weapons are used and may persist for many years despite the official end of conflict. He clarified that the 7-day notice for cancellation of war risk insurance policies does not apply to ongoing voyages but is enforced on new ones.
Mr Imad Abdel Khaleq, CEO of the Arab War Risks Insurance Syndicate (AWRIS) – Bahrain, presented the pool’s experience since its establishment in 1980 and its role during various crises. He highlighted its ability to respond quickly and smoothly to members despite the large volume of work involved in providing daily pricing and meeting insurance requests. Ms Lana Zainal, Chief Technical Officer at AWRIS said that the Syndicate deals daily with its 280 member companies. Investment in process automation has helped accelerate pricing and underwriting through ship tracking data and route analysis.
Mr Hani Al-Kurdi, Vice President-Marine at Apex Insurance and Reinsurance Brokerage–Jordan, pointed out that the market is now driven by “uncertainty”, where pricing risk alone is no longer sufficient. He explained that marine insurance rates have risen significantly: hull insurance pricing previously did not exceed 0.5% annually, but has now reached 2–3% per voyage. He confirmed that capacity exists, but the challenge lies in how it is utilised and distributed by reinsurers.