The conflict with Iran is driving a sharp increase in demand for war insurance across the Middle East. Standard commercial policies for property, cyber, and business interruption typically exclude war-related damage, forcing companies to seek expensive specialized coverage. War-risk premiums for real estate in the Persian Gulf have jumped to 6-8% of property value, up from under 1% in peacetime.

Insurers report receiving over 300 new war coverage submissions in recent weeks as businesses rush to protect against missile strikes and other threats. The surge in demand comes as companies face potential losses in the billions for buildings, infrastructure, and ships if the conflict continues. S&P Global Ratings analyst Sachin Sahni notes that while coverage remains available, it's now tightly controlled and significantly more expensive.

Broker WTW reports that most insurers have seen unprecedented demand for war-risk policies. The situation highlights how quickly geopolitical tensions can disrupt normal insurance markets and force businesses to reassess their risk management strategies. Companies are now paying premium prices for protection that was once considered unnecessary in the region.