DP World backs trade routes with war-risk cover

Dubai-headquartered DP World will offer cargo war-risk cover to companies trading in or through the Middle East amid a surge in insurance premiums driven by the conflict in the Gulf.

The initiative will provide supply chain continuity across key trade corridors, including the Arabian Gulf, Red Sea and surrounding inland routes, the UAE state-run Wam news agency reported, quoting a statement from the global ports operator.

The cover includes physical loss or damage caused by war-related risks, including conflict, civil unrest, seizure and derelict weapons, with all valid claims settled with zero deductible.

Coverage limits extend up to $400 million per shipment and $1 million per inland movement, standalone ocean, air or land transit policies and automatic port storage cover for up to 14 days.

While no premium details were given, DP World said it has secured “pricing that is significantly more competitive than standard war risk premiums”.

The war risk cover is about solving a real, immediate problem for global trade, said group CEO Yuvraj Narayan.

“Supply chains don’t stop at the port or the shoreline, and neither should insurance. For the first time, cargo owners can access a single policy that protects goods across the entire journey, even in high-risk environments, helping keep trade moving when it matters most,” he said.

Further reading:

• War insurance premiums surge in the Gulf
• Iran formalises Hormuz ship approvals and transit tolls
• Risk repriced: how UAE-listed insurers are faring in the Iran war

This month, Omar Gemei, head of global placement for India, the Middle East and Africa at Marsh, told AGBI that Gulf insurance premiums to cover political violence have risen at least 20-fold since the US and Israel launched a war on Iran.

Before the war, a $1 million political violence insurance policy in the Gulf would cost $1,000 to $2,200 a year, but now the same cover costs $20,000 to $120,000, Gemei said.