Saudi Arabia has held talks with London insurance brokers on a government-backed war and political risk insurance plan that could cover vessels sailing in the region. According to Sina Finance, people familiar with the matter said the talks come as insurers have raised premiums and tightened coverage for ships, infrastructure, and cargo such as oil and chemicals amid escalating military actions by the Houthi movement against Saudi Arabia and the Iran war.

People familiar with the matter said Saudi Arabia's Ministry of Finance is studying a pool mechanism that could provide lower-cost insurance for ships and maritime cargo assets. According to Sina Finance, commercial payouts for single incidents such as vessel seizures and missile attacks could reach as much as 700 million Saudi riyals, or $186 million.

According to Sina Finance, the first layer of coverage would be borne by insurers and reinsurers, while the state-owned Saudi Export-Import Bank would provide a backstop that could add several hundred million dollars of coverage for each insured party. In one version under discussion, Saudi Re and Riyadh Re would lead a reinsurance consortium, with international reinsurers also able to take part.

Saudi Arabia's Insurance Authority, Saudi Export-Import Bank, Saudi Re, and Riyadh Re did not respond to requests for comment. People familiar with the matter said the talks are still ongoing and include policy details and the scale of risk the Saudi government would need to bear, though no agreement may ultimately be reached.

Earlier this year, U.S. President Donald Trump announced a plan to subsidize insurance for vessels sailing through the strait, with Chubb and American International Group (AIG) providing support. According to Sina Finance, media reports previously said the program aimed to provide up to $40 billion in coverage, but no policies had been issued months after its launch.