Saudi Arabia establishes marine war risk insurance pool

The Saudi Council of Ministers has approved the establishment of an insurance pool for marine war risks.

The initiative comes amid rising marine insurance rates and reduced coverage for certain vessels as a result of the ongoing conflict and heightened security risks in the Middle East.

The new mechanism is intended to strengthen cooperation between the public and private sectors and enhance the capacity of Saudi Arabia’s local insurance market to manage marine war-related risks, particularly those associated with marine cargo.

The pool is expected to serve a broad range of stakeholders, including exporters and importers, ship operators and shipping companies, businesses involved in the Kingdom’s supply chain, and insurance companies.