War and Terror Risk Cargo Insurance Program Extended to 2025

The General Accountant at the Ministry of Finance, Yeheli Rotenberg, announced yesterday the extension of the cargo insurance program against war and terror risks until July 31, 2025. The program, operated through the Tax Authority's Compensation Fund, is designed to ensure the continuity of Israel's trade and supply even during periods of prolonged security uncertainty.

The insurance program was launched in October 2023 following the outbreak of the 'Iron Sabers' war, after many insurance companies - local and international - ceased to provide insurance coverage for war and terror risks. Since its implementation, the program has served as a central government tool for protecting maritime and air trade activities and has been a critical factor in maintaining the national supply chain.

So far, cargoes worth over $1.1 billion have been insured under the program by dozens of importers and exporters, reflecting its economic and strategic importance.

The General Accountant, Yeheli Rotenberg: 'In times when the security risk is increasing, we must use tools that provide certainty to the economy and continue to flow vital goods to Israel. The cargo insurance program constitutes a national economic defense layer and proves itself as a precise, efficient, and professional tool. The trust that the market and investors show in the solution offered by the state is an important factor in strengthening our economic resilience.'

The head of the Tax Authority, Shai Aharonovich: 'The decision to extend the cargo insurance program until July reflects the government's commitment to maintain the continuity of Israel's trade and supply under the current complex security conditions. The program has already proven itself as an efficient response at times when commercial insurers prefer to avoid exposure to these risks. The state will continue to serve as a reliable anchor when reality requires government intervention. This is a responsible step that ensures we do not leave the economy exposed to uncertainty in this challenging environment.'

The senior deputy to the General Accountant and Finance Division Manager, Gil Cohen: 'The extension of the program expresses systemic responsibility towards the industrial, logistics, and trade sectors, with government backing that allows smooth operation even in times of crisis. This is a calculated macroeconomic step, aimed at preserving the resilience of the Israeli economy and supporting export and import activities.'