Saudi Arabia Launches Marine War-Risk Insurance Pool

Saudi Arabia has approved the establishment of a national mechanism to protect trade and supply chains against war-related risks. In September 2026, the Cabinet approved the creation of the Saudi Marine War Risks Insurance Pool for Cargo and Hull, described as a specialized public–private partnership designed to keep trade flows moving during periods of heightened uncertainty.

The pool is supervised by the Insurance Authority, while operational arrangements are led by Saudi Reinsurance Company (Saudi Re), with participation from licensed Saudi insurance companies. Its core aims are to strengthen the local insurance market's capacity for marine war-risk cover, support the continuity of trade linked to Saudi Arabia, limit the impact of sharp swings and rising reinsurance costs in global markets, and reinforce the Kingdom's position as a logistics and trade hub.

Coverage extends to cargo transported by land, sea and air when exposed to war risks tied to Saudi trade, as well as marine hull insurance for vessels against covered war-related damage. It also includes charterers' liability and protection and indemnity (P&I) coverage for war-related exposures.

Eligible beneficiaries include exporters and importers connected to Saudi trade, vessel owners and operators, shipping and freight companies, logistics businesses, and Saudi insurers participating in the pool. Importantly, insured parties do not deal directly with the pool. Instead, they obtain coverage through participating Saudi insurance companies under terms approved by the Insurance Authority.

Market discussions in 2026 pointed to a state-backed structure offering up to SAR 700 million in commercial cover, with additional backstop capacity potentially provided by a state financial institution. The scheme uses layered coverage, where private insurers and reinsurers handle initial layers and a state-linked backstop supports higher layers, addressing events such as seizure or missile attacks on ships or cargo linked to Saudi trade.

For businesses across the Kingdom, the move offers greater certainty that goods and shipments can keep flowing even amid global volatility, helping protect jobs, prices and the wider supply chain that residents rely on daily.

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