The escalation of armed conflict in the Middle East not only has immediate repercussions for security in the region, but also exposes profound structural deficiencies in the global travel market. Many tourists and business travelers affected by flight cancellations, route changes, or grounded aircraft are finding that their standard travel insurance policies offer no protection in these situations.
Since acts of war are defined as exclusion criteria in most general insurance policies, those affected are often left to bear the costs of rebookings, additional hotel nights, or completely canceled travel services. This situation leads to considerable uncertainty among consumers and presents the travel industry with the challenge of communicating the limits of liability and insurance coverage transparently. While airlines remain obligated to provide transportation under international agreements, private supplemental insurance policies generally do not cover disruptions caused by war, which in serious cases can lead to financial burdens in the four-figure range.
The systematics of the war exclusion clause
In the insurance industry, the so-called war clause is a standard element of almost every policy. It states that damages arising directly or indirectly from war, civil war-like conditions, or riots are not covered by the insurance. The logic behind this is purely calculative: the risk of war is virtually impossible for insurance companies to calculate and, in a worst-case scenario, can lead to such a surge in claims that the insurer's financial stability would be jeopardized. In the current context of the Iran conflict, this means that travel cancellation insurance will not pay out if a flight is canceled due to an airspace closure. Similarly, trip interruption insurance usually refuses to cover additional costs for an early or delayed return journey if this is caused by hostilities in the destination country or transit regions.
The situation regarding medical care is particularly critical. While most international travel health insurance policies cover accidents and illnesses during vacations, this coverage often lapses the moment the foreign ministry issues a travel warning or open hostilities break out. Anyone who remains in a crisis zone despite these warnings risks having to pay for treatment and medical repatriation entirely out of their own pocket if injured in combat.
Liability of airlines and tour operators
Unlike private travel insurance, airlines are subject to stricter obligations under the Montreal Convention and regional regulations, such as the EU Air Passenger Rights Regulation. If a flight is canceled—even due to war—the airline must either refund the passenger's ticket price or offer alternative transportation at the earliest possible opportunity. Furthermore, there is a duty of care, which includes meals, drinks, and, if necessary, hotel accommodation. However, there is a crucial limitation: Payment of a flat-rate compensation is almost always not permitted in cases of war, as these are classified as extraordinary circumstances beyond the airline's control.
The legal situation is somewhat more favorable for consumers when it comes to package holidays. Here, the tour operator bears the risk of disruption. If a trip is significantly impaired due to unavoidable, extraordinary circumstances at the destination or in its immediate vicinity, customers have the right to withdraw from the contract free of charge. The operator must then refund the full price of the trip. However, problems arise if the impairment does not occur at the destination itself, but rather along the way, for example, due to widespread airspace closures that only delay, but do not make, reaching the destination impossible.
Additional financial burden due to transit problems
An often underestimated factor is the indirect cost of airspace closures. The Iran conflict has forced numerous flight routes between Europe and Asia to be diverted. This not only increases flight times but also leads to a massive increase in fuel consumption. Many airlines are responding by introducing short-term fuel surcharges or canceling connecting flights, as they can no longer adhere to planned slot times at hubs.
For travelers who have booked their flights and hotels separately (independent travelers), this creates a dangerous gap. If the long-haul flight is delayed and, as a result, the separately booked domestic flight or the already paid-for hotel at the destination becomes unusable, there is no entitlement to a refund from the insurance company. Since the cause of the delay is an act of war, the usual compensation schemes do not apply. Those affected must bear the costs of new bookings themselves, which often amounts to enormous sums, especially with last-minute purchases at the airport.
Specialized insurance as a costly alternative
In light of increasing geopolitical instability, specialized insurance policies that explicitly cover war-related risks are gaining prominence. These so-called high-risk policies are primarily offered to journalists, aid workers, or business travelers operating in crisis regions. However, the premiums for such coverage are many times higher than those of conventional travel insurance. For the average tourist, these policies are usually unaffordable or, due to the insurers' strict underwriting criteria, simply inaccessible.
While some credit card providers advertise included travel insurance, it's still worth reading the fine print. In most cases, these group contracts also contain the standard exclusion clauses for war and terrorism. Experts therefore advise obtaining written confirmation of coverage from the insurer before booking trips to regions bordering conflict zones, or specifically searching for policies that offer at least evacuation assistance, even if financial losses are not fully reimbursed.
Reactions from the travel industry and outlook
The travel industry is responding to the uncertainty with a more restrictive information policy. Travel agencies and online portals are increasingly emphasizing that choosing a destination and flight route in the current situation involves heightened personal risks. It has been observed that demand for destinations requiring flights over Middle Eastern airspace is declining slightly, while destinations with more direct and safer flight routes are gaining in popularity.
In the long term, the current crisis could lead to a redesign of insurance products. There are initial considerations within the industry to offer modular add-ons for war-related losses, which, for a corresponding surcharge, would make the risk more calculable for the end consumer. Until then, however, travelers are left with only their own precautions: carefully reviewing insurance terms and conditions, maintaining financial reserves for emergencies, and preferably booking package tours to transfer at least some of the legal protection to the tour operator. The gap in the travel market will persist for the time being, as long as geopolitical tensions prevent reliable risk assessment.