New Zealand’s Ministry of Foreign Affairs and Trade (MFAT) has lowered the travel advisory for the United Arab Emirates (UAE) from level three to level two. For brokers, the change opens a coverage question – it does not answer it.
The advisory shift does not suspend war and violence exclusions. Three of the main travel insurers operating in New Zealand have published their positions on the Middle East conflict, and all three separate the government advisory tier from the conflict exclusion.
Nib Travel Insurance states on its website that its policies do not cover losses arising from “hostilities or any act of war,” regardless of the advisory level at the destination. Cover for events unrelated to the conflict – a medical episode or a theft – continues under standard policy terms.
Allianz Travel NZ’s published FAQ states there is “no cover under any benefit of this policy” where a claim arises from not following a government warning when an “avoid non-essential travel” or “do not travel” alert is in place. With the UAE now at level two, that limb no longer applies to new policies. The war exclusion sits separately and remains active.
Southern Cross Travel Insurance (SCTI) confirmed in its March 2026 Middle East advisory that its general exclusion E.5 – covering war, military operations, and related violence – applies across the whole policy. SCTI also confirmed that for policies purchased after the conflict became widely reported, the event is “no longer considered unexpected,” meaning disruption claims tied to it fall outside cover regardless of when the policy was bought.
The Insurance Council of New Zealand (ICNZ) sets out the governing principle on its website: events already occurring at a destination when a policy is taken out are “called ‘known events’ and are unlikely to be covered by your policy.”
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The UAE has held three advisory positions since June. MFAT raised it to level three on July 20, 2026, reversing a June downgrade that had followed a US-Iran memorandum of understanding. September’s change returns it to level two.
Each shift created a different coverage position for clients depending on their purchase date. A client who bought cover during the June level two window, was caught by the July re-escalation, and is now planning October travel is in a different position from someone purchasing a new policy today. The advisory level at purchase, the insurer’s known event classification date, and the specific exclusion wording all interact – and they vary by insurer.
MFAT is direct about what it expects. The live SafeTravel UAE page states: “You should also have a discussion with your travel insurance provider to ensure that your policy covers disruptions or delays to your travel in or through the Middle East region related to the ongoing security situation.”
MFAT also requires that all New Zealanders travelling to or living in the UAE hold a policy that includes medical evacuation by air.
Singapore Airlines has cancelled Dubai flights through October 24 and Cathay Pacific has postponed its Dubai resumption until October 25, according to Stuff. The European Union Aviation Safety Agency (EASA) has issued guidance to air operators to avoid Gulf airspace until at least September 31, 2026, per MFAT’s SafeTravel Middle East page.
Five transit countries used routinely by New Zealand long-haul travellers – Qatar, Oman, Jordan, Bahrain, and Saudi Arabia – remain at level three. MFAT warns that New Zealanders transiting through those hubs could become stranded for extended periods if the situation deteriorates. Clients connecting through Gulf airports en route to Europe or elsewhere carry regional risk that the UAE’s level two rating does not address.
New Zealand Ambassador to the UAE Richard Kay acknowledged the advisory change, but noted on social media that “travellers should remain vigilant and continue to follow local advice at all times, as security conditions can change quickly,” according to The National.
Travel insurance disputes in New Zealand are at record levels. The Insurance & Financial Services Ombudsman (IFSO) Scheme accepted 600 disputes in the year to June 30, 2025 – a 25% increase on the prior year and more than double the 285 recorded in 2022, per the IFSO Scheme’s own media release. Travel insurance accounted for 18% of investigated disputes. Ombudsman Karen Stevens has stated publicly that policies “would generally not cover in situations where travel was disrupted due to war.”
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Four questions apply before confirming a policy for a UAE-bound client. What is the purchase date relative to the insurer’s known event classification for the conflict? Does the war exclusion apply to the client’s specific disruption scenario – not just to level four destinations? Does disruption cover extend to transit delays in the level three neighbouring countries? And is medical evacuation by air included, as MFAT now explicitly requires?
The situation in the region “remains volatile,” in MFAT’s own words on the live SafeTravel UAE page. US-linked locations continue to be targets of Iranian strikes, and the ministry warns that travel advice levels “could also change at short notice.”
The advisory level has changed. The exclusions have not.
