Middle East Conflict Sparks Umrah Insurance Claims; Zurich Syariah Begins Receiving Applications
JAKARTA — Escalating conflict in the Middle East is beginning to impact the travel insurance industry. PT Zurich General Takaful Indonesia (Zurich Syariah) has reported receiving multiple claims from Indonesian umrah pilgrims who have cancelled their trips due to security concerns in the region.
Chief Executive Officer of PT Zurich General Takaful Indonesia Hilman Simanjuntak stated that claims reports have begun arriving from customers affected by the conflict involving the United States, Israel and Iran. “We have started receiving several claim reports from our customers affected by developments in the Middle East,” Hilman said following his participation in the One Zurich Iftar 2026 event in Jakarta on Monday, 9 March 2026.
Hilman explained that the submitted claims generally relate to umrah trip cancellations owing to escalated security risks in the Middle Eastern region. Travel warnings have prompted some pilgrims to postpone or cancel their planned pilgrimages to the Holy Land.
However, Hilman could not specify the number of claims filed as the company is still compiling data. He projected that claim submissions could increase should the conflict escalation in the region continue.
“Of course, the claims process will proceed according to the applicable policy provisions and our claims team always responds swiftly, particularly in circumstances such as these,” Hilman said.
Beyond claims impact, Hilman assessed that geopolitical conflict also poses potential pressure on travel insurance product demand. He suggested that some prospective pilgrims may defer their Middle East travel plans until the situation is deemed safer.
“I am fairly confident that some umrah pilgrims will feel this is not the time to travel, which is very reasonable. So there may be some slight negative impact, possibly, but we cannot see that clearly at present,” Hilman said.
Conversely, economist from the Centre for Economic and Law Studies (CELIOS) Nailul Huda assessed that Middle East geopolitical tensions could potentially elevate demand for marine cargo insurance. Global logistics shipping risks are considered heightened, particularly along strategic shipping lanes such as the Strait of Hormuz, which serves as one of the world’s primary oil distribution routes.
Beyond the logistics sector, Nailul also highlighted potential cost pressures in healthcare arising from global economic turbulence. Rising prices for imported medicines and medical equipment could drive imported inflation in the medical sector.
“Consumers with high awareness will strengthen their insurance product coverage due to this uncertainty,” Nailul said.