War insurance for Gulf events becomes scarce amid U.S.-Iran conflict

Event insurers in the Gulf region continue to offer coverage for cancellations caused by weather, IT failures, or national mourning periods, according to Skift. However, coverage for cancellations due to war or political violence has become increasingly difficult to obtain.

Since the start of the U.S.-Iran conflict in late February, war-related cancellation insurance for Gulf events has become scarce. Industry executives told Skift that standard event-cancellation policies exclude war and political violence, requiring organizers to purchase separate coverage for these risks.

Currently, only one or possibly two insurers are willing to consider offering war exposure coverage for events in the Gulf, and even then, only on very limited terms and generally no earlier than about one week before the event, said Panteha Peters of Marsh Middle East and Africa.

This lack of war insurance is prompting event organizers in the Gulf, including in Saudi Arabia, to either postpone events or assume the risk themselves. The situation is affecting Saudi Arabia's event calendar and raising questions about the future of its position as a leading conference host in the region.

Skift highlights concerns about how event organizers are managing the costs of war coverage and who absorbs losses when events are canceled without such insurance. The combination of missile attacks, travel advisories, and disappearing war insurance is exposing vulnerabilities in Saudi Arabia's business events pipeline.