Saudi Arabia establishes war risk insurance pool for maritime trade

The Saudi Arabian Cabinet has approved the establishment of the ‘Saudi War Risk Insurance Pool for Goods and Ships.’ Led by the Saudi Arabian Insurance Reinsurance Company (I'adah) and supervised by the Insurance Authority, the initiative aims to provide coverage for goods transported by sea, land, and air, as well as vessel hulls and lessee liabilities.

Finance Minister Mohammed Al-Jadaan stated that the pool is a specialized national mechanism designed to enhance the local insurance market's ability to face growing maritime risks and geopolitical challenges. By providing a national protection umbrella, the pool seeks to ensure the continuity of trade and supply chains while mitigating the impact of global reinsurance market volatility on the Saudi market.

The move aligns with Saudi Vision 2030, which aims to transform the Kingdom into a global logistics hub and increase the insurance sector's contribution to non-oil GDP to 3.6% by 2030. Following the announcement, the insurance sector index rose by approximately 2%, with I'adah shares jumping over 8% in January 2025. The Public Investment Fund recently acquired a 23% stake in I'adah through a capital increase.