Briefing: What does the Q1 2026 Middle East conflict mean for travel insurance?

Travellers to and from the Middle East have faced major disruption in recent days due to a rapid escalation of regional tensions.

On 28 February 2026, the US and Israel carried out coordinated military strikes on Iran, triggering retaliation – missiles and drones have since been launched across the region.

In response, multiple Middle Eastern countries have closed all or parts of their airspace, causing issues for travellers.

The BBC reported on 2 March 2026 that more than 4,000 flights a day have been cancelled across the territory, according to flight tracking service Flightradar24, with hundreds of thousands of passengers affected.

Normally, at this point, travel insurance will kick in for holidaymakers or business commuters impacted by flight cancellations.

Taking this cover out is essential for travellers given it provides financial protection for multiple things, such as travel disruption and emergency medical treatment when away from the UK.

Policy wordings

However, while passengers stranded across Middle Eastern global hubs – such as Dubai – may well turn to their travel insurance provision for support, credit rating agency Morningstar DBRS has warned that acts of war are typically excluded from these policies and coverage very much depends on specific policy wordings.

So, travel insurers could see an uptick in claims, but may rely on small print exclusions to limit payouts.

Following the geopolitical escalation in the Middle East, insurer Allianz advised: “Allianz Travel insurance policies contain specific exclusions stating that there is no cover under any section of the policy for claims that arise directly or indirectly from any act of war, whether declared or undeclared.

“In addition, for those customers that are not directly impacted but are reconsidering their travel plans, policies have an exclusion, meaning that there is no cover for any claim that results from the policyholder or their travel companions changing their plans.”

What it means for customers

What does this really mean for travellers who are stuck in the Middle East and have been forced to pay extra for alternative flight or accommodation arrangements?

Firstly, it will be essential for travellers to review their specific travel insurance policy and speak to their insurer if needed, so they understand what they are covered for.

If exclusions do apply, Allianz noted that travellers and travel agents will need to work within the scoped flexibility provided by airlines and other suppliers for refunds, rebookings or accommodation if flights are cancelled or there are delays due to the conflict.

And when replanning journeys, travellers should minimise expenses and keep all receipts.

Meanwhile, when it comes to future travel to the Middle East, insurers may end up making decisions based on advice issued from the UK government’s Foreign, Commonwealth and Development Office (FCDO).

Tim Knighton, senior commercial manager at Compare the Market, said: “In light of the escalation of events over the weekend, anyone with upcoming travel plans to impacted regions should closely monitor the latest advice from the FCDO, as guidance can change quickly in response to events on the ground.

“Travellers should also be aware that once the FCDO changes its advice, this may be treated as a ‘known event’ by insurers, meaning new policies taken out after the change are unlikely to cover disruption or cancellation related to that destination, so it’s important to check the latest guidance and insurer policy terms before booking or buying insurance.”

Expanding the scope of travel insurance 

So, there are plenty of considerations for both the industry and travellers. But one of the key questions arising out of this situation is why is war coverage in travel insurance policies limited?

According to insurer Axa, most standard travel insurance policies have exclusions or conditions relating to war, as these are risky, unpredictable events and can cost insurers a lot of money.

“While travel insurance may cover terrorism, war coverage is much more limited,” Axa said.

“Most policies exclude war, especially if it was declared at the time of booking. Travellers must consider adding a war or terrorism rider if travelling to unsafe regions.”

However, geopolitical events have been unpredictable for years and perhaps there could be an opportunity to rethink travel insurance as a result.

At the end of the day, according to broker Marsh, the volume of accelerating geopolitical transitions has unleashed a new era of unprecedented complexity.

So, while challenging, finding a way to expand the scope of travel insurance could become a necessity for the future.