Saudi Arabia approves marine war-risk insurance pool to support trade

Saudi Arabia's Cabinet has greenlit the creation of a national insurance pool to cover war risks for cargo and vessels. This initiative aims to bolster marine insurance capacity and help maintain the continuity of trade and supply chains. Finance Minister Mohammed Al-Jadaan announced that the pool would serve as a specialized national mechanism to aid the insurance market in managing maritime risks through a public-private partnership.

The initiative is expected to enhance the market's technical preparedness and increase its capacity to offer necessary insurance coverage, in line with the frameworks and regulations approved by the Insurance Authority. Al-Jadaan emphasized that the pool would also strengthen Saudi Arabia's resilience as a national economy and boost its standing as a global logistics hub.

The Saudi Reinsurance Company will spearhead the pool's arrangements under the Insurance Authority's oversight, with the involvement of insurance companies. Policyholders will have access to the pool via participating insurers, in accordance with the approved terms and conditions.