Saudi Arabia approves national marine war-risk insurance pool, led by Saudi Re
The pool is intended to improve the Saudi insurance market’s technical preparedness and expand its capacity to provide marine war-risk coverage.
SAUDI ARABIA – Saudi Arabia’s Cabinet has approved the creation of a national marine war-risk insurance pool covering cargo and hull and has appointed Saudi Reinsurance Company (Saudi Re) to lead the initiative, according to a government statement.
The pool will include participating insurers, and policyholders can obtain coverage through those companies under approved terms and conditions. Minister of Finance Mohammed Aljadaan said the initiative would establish a dedicated national mechanism to manage risks associated with maritime conflict.
“The Saudi Pool represents a specialized national mechanism that enhances the insurance market’s ability to deal with the risks of maritime warfare, and supports the continuity of trade and supply chains, through a partnership between the public and private sectors,” Aljadaan said.
Purpose and scope
The pool is intended to improve the Saudi insurance market’s technical preparedness and expand its capacity to provide marine war-risk coverage.
It also seeks to limit the effects of fluctuations in global reinsurance markets and support the resilience of Saudi Arabia’s economy and its competitiveness as an international logistics hub.
Saudi Re said the initiative would foster cooperation between the public and private sectors and improve the domestic insurance market’s ability to address marine risks.
Moreover, cabinet approval establishes a domestic framework through which businesses can obtain insurance protection against war-related risks affecting cargo and vessels.
Trade continuity and market context
The initiative is designed to help maintain trade and supply-chain continuity when maritime operators face heightened risks or volatility in international reinsurance markets. It aims to reduce dependence on volatile international reinsurance markets and provide domestic businesses with reliable coverage during periods of geopolitical conflict.
The pool follows disruptions to shipping in the Red Sea and the Strait of Hormuz that have affected insurance premiums and routing for vessels calling at Gulf ports, according to shipping advisories issued by carriers, including Maersk and MSC, in 2026.
This initiative provides a robust safety net that reduces dependence on volatile international reinsurance markets, while Saudi Re continues to expand the domestic insurance market’s capacity to cover maritime risks.
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