News ME Conflict11 May 2026

ME conflict:New reality means marine insurance and war risk coverage irrevocably altered

| 11 May 2026

Recent global developments have underscored the growing importance of marine insurance and war risk coverage, placing new pressures on the insurance sector, according to a senior official of the Financial Services Authority (FSA).

Referring to the Iran war, which erupted on 28 February 2026, an average of 120 to 140 ships crossed the Strait of Hormuz daily. That number has now dropped sharply — by as much as 95% — with current figures indicating just five vessels, highlighting the scale of disruption.

This is one of the main challenges we are facing today as an insurance sector, and it is impacting economic activity,” said Ms Maali bint Salim al Majarfi, FSA’s Acting Director of the Issues and Financial Instruments Department.

She noted that war risk coverage is now undergoing a significant shift. “This unexpected risk has changed the landscape. Things may never be the same, even decades from now, because we have seen how real these risks are,” she said.

She added that this unexpected risk has changed the landscape. “Things may never be the same, even decades from now, because we have seen how real these risks are,” she said.

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