The situation in the Middle East, especially in countries directly involved in the conflict, continues to evolve in quick time. The situation on the ground in each country is nuanced, changing rapidly (sometimes by the hour), and travellers are being advised to assess their own risk profile and reasons for going there.
Travellers are not sure if it will be safe or not to travel in the region. Several major airlines have either completely called off their services to and from this region or are just running skeletal services. It is still not very clear when it will be safe to travel to the region.
Speaking with Middle East Insurance Review, Union Assurance Chief Marketing Officer Mahen Gunarathna said, “Geopolitical instability has a habit of travelling far beyond its borders, and the ongoing Middle East conflict is no exception. For Asian insurers, the effects are becoming increasingly difficult to ignore, and in some business lines, they are already being felt in hard numbers.”
Enlightened travellers
Speaking about aviation insurance, Mr Gunarathna said this line of business tells a more nuanced story. Rerouted flight paths have pushed costs upward, but something more interesting is also happening. Travellers are paying a lot more attention, in ways they simply weren't doing earlier.
Travellers are relooking at and evaluating their destinations once again. If they were not buying travel insurance earlier, they are certainly having a look at this essential component of their travel kit, which was perhaps missing earlier.
Those who are regular purchasers of travel insurance cover before they begin their journey are now reading their policy terms carefully, questioning conflict exclusions, and thinking cautiously about what coverage actually means when circumstances shift mid-journey.
He said, “A more informed traveller is ultimately a more engaged one, and that shift in consumer behaviour will reshape how travel insurance solutions are designed and communicated going forward.
“Looking ahead, the trajectory is clear. EY's APAC insurance sector leader has said that while geopolitical tensions pose real challenges, they also present genuine opportunities to design new solutions to meet evolving needs.”
He said political violence, political risk, trade credit, and specialty lines are all areas where Asian insurers will need sharper frameworks and more dynamic pricing models.
“None of this is cause for alarm, but it is cause for seriousness. The industry's response will need to be built on rigorous risk assessment and the recognition that a distant conflict can quietly, and quickly, reshape the ground,” said Mr Gunarathna.
Marine and energy
For Asia, whose energy security depends heavily on Middle Eastern supply, this is not an abstract concern. The Strait of Hormuz alone carries more than 30% of the world's crude oil and 20% of global LNG, representing a chokepoint whose disruption sends shockwaves through marine cargo, energy liability, and industrial risk books across the region.
Mr Gunarathna said, “Considering marine and energy first, the data speaks plainly. War risk premiums for Red Sea transits have surged twentyfold from late 2023, while transit volumes collapsed 65% by mid-2025.”