Cabinet approves war-risk insurance pool for cargo, ships

Finance Minister Mohammed Al-Jadaan

Finance Minister Mohammed Al-Jadaan said the Saudi Cabinet has approved the establishment of a Saudi pool to provide war-risk insurance for cargo and ships.

Al-Jadaan said the Saudi marine insurance pool is a specialized national mechanism aimed at strengthening the insurance market's ability to manage marine risks and supporting the continuity of trade and supply chains through a partnership between the public and private sectors.

He said the pool would enhance the insurance market's technical readiness and expand its capacity to provide relevant coverage, in line with the frameworks and regulations approved by the Insurance Authority. This would support the resilience of the national economy and strengthen Saudi Arabia's competitiveness as a global logistics hub.

Saudi Reinsurance Co. is leading arrangements for the pool under the supervision of the Insurance Authority, with the participation of insurance companies. Policyholders will benefit from the pool through participating insurers and in accordance with approved terms and conditions.

The Insurance Authority said the pool was a national initiative established to provide an insurance solution for marine risks involving cargo and ships and to ensure the sustainability of such coverage during periods of heightened risk.

The authority said the pool was launched to strengthen the insurance market's readiness to manage marine insurance risks, support the continuity of trade and supply chains, mitigate the impact of volatility in global reinsurance markets, and enhance Saudi Arabia's competitiveness as a global logistics hub.

The pool will provide insurance coverage for cargo transported by land, sea, and air, as well as hull insurance, charterers' liability, and protection and indemnity coverage.

The authority said beneficiaries of the pool include exporters and importers, ship operators, shipping and maritime transport companies, shipowners, sectors linked to supply chains in Saudi Arabia, and insurance companies.