Gulf Political Violence Insurance Premiums Surge 20-Fold Since Iran War Began on February 28

According to Marsh, the world’s largest insurance broker, political violence insurance premiums in the Gulf have surged at least 20-fold since the Iran war began on February 28. Before the conflict, a $1 million policy cost $1,000 to $2,200 annually; it now costs $20,000 to $120,000. Marsh data shows insurers slashed available capacity from approximately $1 billion to $200 million after the war started, while demand increased exponentially, driving price increases significantly higher.

Omar Gemei, head of global placement for Marsh covering the Middle East and Africa, noted that small and medium-sized companies are now increasingly seeking such coverage. He added that if stability continues, rates may soften but are unlikely to return to pre-conflict levels.