Israel Ministry of Finance Reviews War Risk Cargo Insurance Extension

The Israeli Ministry of Finance responded this morning (Monday, October 19, 2026) to an urgent inquiry from Amir Shani, Chairman of the Israeli Federation of Forwarders and Customs Clearing Agents, who called for a three-month extension of the government-backed cargo insurance program against war and terrorism risks.

As a reminder, the organization's appeal followed a decision by the Ministry of Finance and the Tax Authority last August, stating that the program—operated through the Compensation Fund—would cease on October 31. This comes as shipping giants Maersk, MSC, and Hapag-Lloyd gradually return to Red Sea routes, a path where commercial insurance companies still refuse to provide cargo coverage.

The Ministry of Finance's response, sent by Eran Lefel, Head of Government Insurance and Credit at the Accountant General’s Department, clarified the decision-making mechanism: "The program's review mechanism is conducted periodically; once a month, we examine the volume and status of policies purchased under the program. Following this review, a recommendation is submitted to the 'Committee for Insurable Assets.' The authority to approve the program's extension rests with this committee, which makes its decisions based on the recommendation presented to it."

Lefel further clarified in his letter that should the committee decide to extend the program's validity, a formal announcement will be published on the Ministry of Finance website.

However, the Treasury emphasized at the end of the letter that "nothing stated herein constitutes a commitment to extend the program beyond the date set in the original notice."

Now, the eyes of importers, exporters, and the logistics community are on the committee's decision, which is expected in the coming days as the program's expiration at the end of the month approaches.