The Regional Diagnostic on the State of Insurance in Arab States explores ways in which insurance, Takaful, and disaster risk finance can help to overcome the risks, hazards, and shocks faced by 14 ODA-recipient Arab states across the Middle East, North Africa, and the Horn of Africa. Alongside climate and environmental risks, the report examines the solutions needed to address shocks such as insecurity, conflict, health crises, and socioeconomic hazards.

The report highlights that the Arab states included in the study face increasing exposure to climate shocks, natural hazards, conflict, and economic instability, and that these risks are intensified by fragility and limited access to insurance and risk-financing tools. Regulatory barriers and cultural perceptions continue to constrain demand. The report recommends regulatory reform, digital distribution, expanded microinsurance, and strengthened Takaful frameworks, alongside risk-layered disaster financing and regional risk pools to enhance resilience.