Event organizers across the Gulf region are facing a severe shortage of war insurance, a critical coverage layer that has largely vanished since the outbreak of conflict between the United States and Iran in late February. While standard cancellation policies remain available for weather or technical failures, protection against political violence has become nearly impossible to secure at reasonable rates.
This gap in coverage is forcing organizers to either absorb the risk themselves or postpone high-profile gatherings. The situation has created significant pressure on Saudi Arabia, which hosts a dense calendar of international conferences and sporting events.
Insurance Capacity Shrinks Sharply
Standard event cancellation policies typically exclude war and political violence. Organizers usually purchase this protection as a separate, specialized layer. According to industry data, the capacity to write this specific cover has collapsed from approximately $1 billion to roughly $200 million since the conflict began.
Premiums for political violence coverage in the Gulf have risen by at least 20 times, according to Marsh Middle East and Africa. The broker reported that only one or possibly two insurers are currently willing to consider war exposure for events in the region. These few carriers are offering terms on a strict case-by-case basis, often requiring applications no earlier than one week before an event.
Panteha Peters, head of sports, entertainment, media and special risks at Marsh Middle East and Africa, confirmed that the market has tightened significantly. She noted that the scarcity of capacity means organizers have little leverage to negotiate favorable terms.
Saudi Arabia Faces Direct Impact
Saudi Arabia is experiencing the most acute effects of this insurance drought. The kingdom has seen a series of major events slip or face uncertainty due to the deteriorating security environment. Morningstar DBRS analyst Marcos Alvarez highlighted that Houthi missile and drone campaigns targeting Riyadh, Abha, and Dammam in October transformed war from a theoretical exclusion into a live, priced peril.
Consequently, a long list of scheduled events has been postponed or canceled. Notable examples include the Future Investment Initiative conference, the EU-Gulf summit, Intersec Saudi Arabia 2026, the Saudi Retail Forum, the 2027 Dakar Rally, the Saudi International golf tournament, the Red Sea Film Festival, and Riyadh Fashion Week.
Yasmin Dacuycuy from Gallagher noted that pricing for standard cancellation cover has remained relatively stable this year. The financial squeeze is concentrated almost entirely in the war layer. Events that do proceed are often doing so with lower coverage limits, more exclusions, or no cancellation insurance at all.
The drying up of Gulf event insurance highlights the broader economic ripple effects of the U.S.-Iran conflict. As organizers struggle to secure protection, the region’s reputation as a hub for large-scale international gatherings faces ongoing challenges.
Source: Skift
