Global conflicts drive demand for war risk insurance

The ongoing conflicts in Ukraine and the Middle East have led to a surge in demand for war risk insurance. This type of coverage protects businesses and individuals against the financial impact of war, including damage to property, interruption of operations, and other related losses. The conflict in Ukraine, which began with Russia's invasion in 2022, has disrupted global supply chains and increased the need for protection against war-related risks. Similarly, the ongoing instability in the Middle East, including the conflict in Yemen, has also contributed to the rising demand for war risk insurance. Insurance providers are responding to this demand by offering a range of specialized products, including coverage for physical damage, business interruption, and political violence. The costs of these policies have also increased, reflecting the elevated level of risk in the current geopolitical climate. As global conflicts continue to evolve, the need for effective risk management strategies, including war risk insurance, is expected to remain a priority for businesses and individuals operating in volatile regions.