At the 2025 Hotelier Maldives General Managers (GM) Forum, the team from Dhivehi Insurance took the stage to highlight a topic often overshadowed by more glamorous aspects of hospitality — the vital role of insurance in safeguarding businesses against emerging risks. In their joint presentation titled “Insurance Solutions for Emerging Risks in a Maldivian Context,” Thanzeem Ahmed, Manager – Technical, and Ismail Nishan, Senior Sales Executive, underscored how a proactive, customised approach to risk management is becoming essential for the future resilience of the country’s tourism sector.

Opening the session, Nishan thanked the industry leaders, partners, and stakeholders gathered at the forum. “This is a room full of people working tirelessly to improve our industry,” he said. “What we’re discussing today — emerging risks — are not challenges that any one party can solve alone. They require collaboration, foresight, and the right financial protection.”

Founded in 2016, Dhivehi Insurance has quickly established itself as one of the Maldives’ leading providers of specialty insurance solutions. Nishan spoke proudly of the company’s origins and leadership. “Our Chairman, Abdul Wahid Thowfeeq, and Managing Director, Ahmed Ameel, have each spent more than three decades shaping the Maldivian insurance landscape,” he said. “We’ve learned from them that real value lies not in selling standard policies, but in understanding our clients’ specific risks and tailoring solutions to meet them.”

He explained that “emerging risks” are not entirely new but are becoming more frequent and severe due to changing economic, environmental, and digital conditions. Dhivehi Insurance has identified five key risk areas that pose growing challenges to hospitality businesses in the Maldives — pandemics, contractual financial losses, delays in resort startups, cybercrime, and terrorism. “These are the issues we hear most from clients,” Nishan noted. “And we believe that with the right approach, every one of them can be mitigated.”

Taking over the presentation, Thanzeem Ahmed delved deeper into each of these risks and outlined how tailored insurance products can help protect tourism businesses from their impact. Starting with cybercrime, he noted how digitalisation — while essential to modern hospitality — has introduced silent but serious vulnerabilities. “In the age of AI and interconnected systems, cyberattacks are no longer loud or visible,” he explained. “They are silent, sophisticated, and aimed at your most valuable assets — your data, your revenue, and your guests’ trust.”

He shared that Dhivehi Insurance has seen Maldivian clients suffer losses exceeding USD 6 million due to cyber incidents in recent years. “Cybercriminals target guest databases, payment systems, and booking engines,” he said. “They steal personal information, lock systems for ransom, and sometimes trick finance staff into fraudulent transfers.” To counter this, he introduced Dhivehi Insurance’s Cyber Risk Insurance, which covers emergency response and investigation costs, legal expenses, income loss due to business interruption, and even ransom payments where applicable. “If your systems are breached, this policy ensures you have access to forensic IT experts, lawyers, and financial support to get your operations back online — and your reputation protected,” he said.

The discussion then turned to terrorism, a risk that, while rare, carries enormous implications for a destination like the Maldives. “Terrorism is a global concern, and no destination is completely immune,” Thanzeem stated. “Our Terrorism Insurance policy covers not only the physical damage and rebuilding costs but also loss of income during closures.” He explained that the policy also includes coverage for “loss of attraction” — where an attack elsewhere in the country affects tourist arrivals — and “prevention of access,” which protects against income loss when transport or access routes are temporarily blocked. “In short, this policy provides not just financial compensation, but peace of mind,” he said.

Reflecting on the lessons from recent years, Thanzeem acknowledged that the pandemic fundamentally changed how businesses view risk. “COVID-19 taught us that disruptions can come from anywhere,” he said. “Even if your property is safe and fully operational, global shutdowns can halt your revenue overnight.” Dhivehi Insurance’s Pandemic Cover is designed to help resorts manage such scenarios, compensating for lost income and ongoing fixed costs when operations are suspended due to public health emergencies. “We also cover the extra expenses that come with operating safely — from health screenings and staff retraining to additional hygiene measures,” he added.

Delays in resort openings, another recurring issue in the industry, have also been addressed through a Delay in Startup policy. “This is for resorts still in development,” Thanzeem explained. “If a fire, flood, or other event causes your opening to be postponed, we cover your projected income and fixed costs.” The policy ensures that developers and investors retain confidence even in the face of unforeseen disruptions. “It allows you to hit the reset button and recover quickly, protecting not just your property, but your financial forecasts,” he said.

The final area of concern — Contractual Financial Losses — focused on the risks faced when contractors fail to deliver on projects. “We’ve seen developers left stranded after contractors go bankrupt or abandon work midway,” Thanzeem said. Dhivehi Insurance offers Performance Bonds and Advance Payment Bonds, which provide financial guarantees for resort owners and investors. “If the contractor fails, we step in so you can recover costs and continue the project without losing momentum,” he explained. “We also pre-assess contractors before issuing a bond, so you can rest assured that those working with you have been financially vetted.”

Concluding the presentation, Nishan reminded the audience that while insurance may not be top of mind during times of success, it becomes indispensable during times of crisis. “When financial loss strikes, we’re the people who help you get back on your feet,” he said. “That’s what Dhivehi Insurance stands for — providing stability, security, and confidence to the Maldivian hospitality industry.”