Conflict in the Middle East - Impact on Insurance Policies

18 March 2026

To ensure we continue to act in the best interests of our clients, we are observing the developments in the Middle East and assessing how the ongoing conflict may progress. Initially it was felt the conflict might be over within a matter of a few weeks but that may not be the case as it now appears the disruptions may continue for longer than expected.

Travel Insurance

Current advice from our government (as of 16 March 2026) is that New Zealanders who can do so should leave the region immediately, using commercial flights or by road where possible.

This is considered the fastest and safest option that the current Middle East security situation has given. Once the government issues official travel warnings, travel insurers will then “limit” cover and may exclude certain countries and/or regions from their policies.

Please check with us and/or your Insurer for updates and any ongoing coverage details, for instance, checking the date a policy was issued against certain travel warnings that have been issued.

Insurers may not cover losses, pay, or reimburse any costs under any section of this Policy arising from circumstances where:

(a) prior to the issue date shown on “Your Certificate of Insurance” (for a Cancellation claim); or

(b) prior to you starting your trip (for all other claims under the Policy); the New Zealand Government, or a New Zealand government agency such as MFAT, had issued a travel advisory warning you “Do Not Travel” or advising that borders are closed for the destination You intended to travel to.

Please refer to who.int or www.mfat.govt.nz , or other official government sites for up‑to‑date information.

“War” and “Terrorism” exclusions

Many insurance policies already contain “War” and “Terrorism” exclusions, which means that any loss, damage, or claim caused by war, conflict, or terrorism is not covered.

In other words, even though the conflict has escalated or changed, the outcome for the insurance policy remains the same — if a loss is related to war or terrorism, the policy will fall outside the scope of cover.

Marine Cargo

Marine Cargo policies can have certain “War” and “Strikes” cover for cargo while it is on the water (afloat), so to speak, but these marine insurers are now starting to pull back this cover.

Cargo on land continues to remain uninsured for War, Strikes, or Terrorism.

The Strait of Hormuz

From a broader insurance viewpoint, I’m sure the London marine market has been tested in managing cover and concerns around ships and tankers trying to pass through the Strait of Hormuz. Obtaining or even offering this cover would be tricky, to say the least.

We have also heard that the US government (via Chubb Insurance) may offer some form of indemnity to help shipowners manage these risks, acknowledging that this is not just about insurance cover, but also the very real fear of loss of life and the wider implications of warfare.

We will continue to closely monitor developments in the Middle East and keep you informed.

Important Travel Insurance Advisory Information

aibGROUP partners with various travel insurers to offer International & Domestic Travel Insurance to our valued customers.

To view the latest travel advisory notices from Allianz (our online travel insurance provider), please visit: