According to Gallagher's Middle East and Africa Insurance Market Update: 2024 Overview and 2025 Outlook, published in 2025, rates for political violence (PV) coverage are expected to moderately increase this year, as geopolitical tensions and economic uncertainties persist.
Despite this, the report also noted that risk assessment capabilities are expected to lead to tailored pricing and may also result in stabilising rates in areas with lower risk.
Capacity is also expected to “remain robust” in the Middle East, driven by rising competition from new entrants looking to underwrite risk in the region, the report stated. The new competition is also expected to bring in more capacity, especially in markets where demand for PV coverage is on the rise, the report said.
Moreover, the report showed that PV coverage availability may also be expanded through government subsidies or initiatives to provide (re)insurance backstop.
The Middle East experienced conflicts in Gaza and Lebanon, alongside other regions in 2024. (Re)insurance premiums rose as a result, and (re)insurers then looked to diversification as a way to seek growth against a backdrop of geopolitical uncertainty, according to the report.