Chubb has released information about the operational model and intended coverage of a newly launched maritime insurance facility, created in partnership with the US International Development Finance Corporation (DFC).
The DFC named Chubb as the lead underwriter for its $20bn Maritime Reinsurance programme earlier this month.
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The facility aims to support global trade by providing insurance for commercial shipping, with a particular focus on restoring confidence in energy and goods transportation.
Chubb will oversee the facility, set pricing and coverage conditions, assume risk, and be responsible for issuing policies and handling claims.
As part of the arrangement, the DFC will coordinate a group of US reinsurers and establish entry requirements for ships seeking cover under the programme.
The initiative brings together the DFC, Chubb, and other major US-based insurers with experience in marine and marine war risk.
Insurance provided through the facility will include coverage for vessels’ hulls, liabilities and cargo linked to war risks.
Coverage will extend to war hull risk insurance, war protection and indemnity insurance, as well as war cargo insurance.
Only vessels meeting specific eligibility guidelines determined by the US Government will qualify.
The facility will be open to ships passing through the Strait of Hormuz, subject to certain conditions.
Additional insurers participating in the consortium are expected to be named soon.
At the time of the selection announcement, Chubb CEO and chairman Evan Greenberg had said: “Chubb is proud to lead and manage this programme in partnership with the United States Government and the US International Development Finance Corporation. The commerce passing through the Strait of Hormuz plays a vital role in the global economy, and providing vessels with insurance protection is essential for resuming trade flows.”
