Israel Relaunches Cargo Insurance Program to Mitigate War and Terror Risks Starting 2026

The Israeli Ministry of Finance announced the relaunch of its cargo insurance program against war and terror risks, effective from September 1, 2026. The program, managed through the Tax Authority's Compensation Fund, aims to ensure the continuity of Israel's trade and supply chains amid ongoing security challenges. It had previously insured cargo worth over one billion dollars before its suspension in mid-June.

The decision to renew the program follows repeated requests from the business sector and importers' associations, addressing expected pressures and gaps in the private insurance market. Michal Abadi-Boiangiu, the Ministry of Finance's Accountant General, emphasized the program as a "national protection layer" that provides certainty and supports the flow of essential goods despite security risks along trade routes.

Tax Authority Director Shai Aharonovitch highlighted the government's commitment to maintaining trade continuity under complex security conditions, noting that the program has proven effective when commercial insurers avoid exposure to such risks. Senior Deputy Accountant General Gil Cohen added that the program reflects systemic responsibility to safeguard Israel's economic resilience by ensuring operational continuity during challenging periods.

This government-backed insurance initiative responds to the current security environment and will enable importers and exporters to operate with confidence amid uncertainty, reinforcing the stability of Israel's economy and supply chains.