FT reports Saudi authorities have discussed with London brokers a state-backed
war and political-risk insurance scheme to cover regional vessels after conflict
threatened Saudi trade. The finance ministry is studying a pooled plan to insure
ships and maritime cargo at lower cost, offering up to SAR700m (about $186m) of
commercial cover per event. Insurers and reinsurers would supply a first layer
of cover; a state-backed backstop via the state-owned Saudi Export-Import Bank
would provide insured entities with several hundred million dollars of
additional protection. Saudi Re and Riyadh Re are expected to lead a reinsurer
consortium under discussion, which may include international firms.
