Companies with operations in the Middle East are being advised to review and update their risk management and insurance strategies in response to ongoing geopolitical and transportation challenges.
According to a recent insight note from Aon, the region’s evolving landscape is prompting organisations to prepare for scenarios that may require rapid adaptation and flexible insurance solutions.
Aon’s report emphasised the importance of operational oversight and contingency planning to safeguard business continuity.
It highlighted that the current environment requires not only traditional insurance coverage but also a focus on real-time responsiveness and resilience.
The report identified that persistent geopolitical uncertainty is driving demand for dynamic insurance strategies, particularly in marine, cargo, and political risk lines.
Businesses are encouraged to regularly review their risk profiles and ensure that insurance policies are kept up to date for critical locations.
Organisations are also being urged to evaluate how changes in supply chains, shipping routes, and security protocols may affect their risk transfer arrangements.
This process involves ongoing risk analysis and close collaboration between logistics, legal, and insurance teams, as well as proactive compliance planning.
Clear communication and defined roles among insurers, brokers, risk engineers, and operational staff are considered essential for effective responses to potential disruptions.
Jord Oostrom, chief commercial officer for Aon in the Middle East, said the current risk environment highlights the need for proactive risk management and adaptable insurance strategies for multinational businesses, especially those in sectors such as energy, shipping, and logistics.
“For global businesses – especially those in energy, shipping and logistics – the current risk environment in the Middle East underscores the need for proactive risk management and agile insurance strategies,” he said.
Oostrom noted that insurance continues to play a key role in supporting business continuity, with sustained interest in war risk and political violence coverage for maritime operations.
“Across the maritime sector in particular, the demand for war risk and political violence insurance protection remains strong,” he said.
He added that in a region where risk factors can change quickly, companies must continually evaluate the adequacy of their insurance protection.
Oostrom outlined three main areas of focus:
Aon’s report provided several operational recommendations for managing supply chain risk. These include:
The report advised companies to consult with regional experts, conduct regular reviews of insurance coverage, and develop comprehensive risk management plans tailored to the Middle East’s unique challenges.
The insurance landscape in the Middle East is also influenced by broader economic trends. Aon’s findings are consistent with Allianz Trade’s Global Insolvency Report, which projects a continued rise in business insolvencies globally, with increases of 6% in 2025 and 3% in 2026.
The report attributed this trend to persistent high interest rates, economic uncertainty, and subdued consumer demand.
Aon’s Client Trends 2025 report identified four major trends – trade, technology, climate, and workforce dynamics – as key factors shaping risk exposure and organisational responses.
The report, based on insights from Aon’s Risk Capital and Human Capital divisions, underscored the need for integrated decision-making as these trends become increasingly interconnected.
