The US International Development Finance Corporation (DFC) has selected Chubb as the lead underwriter for its maritime reinsurance initiative, which is set to provide up to $20bn in insurance cover for vessels operating in the Gulf.
The scheme aims to help restore commercial shipping activity in the region by offering insurance primarily focused on hull and machinery and cargo, according to an announcement from the DFC.
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DFC CEO Ben Black said: “DFC is pleased to partner with Chubb, one of the world’s leading insurance companies, to help get energy and trade flowing again through the Strait of Hormuz.
“DFC’s Maritime Reinsurance plan combines Chubb’s premier underwriting expertise with the financial commitment of the US Government. With today’s announcement, we are one step closer to restoring market confidence and resuming energy and commercial trade disrupted by the conflict with Iran.”
Chubb is a global provider of property and casualty insurance including political risk and maritime insurance.
It will issue policies for vessels that meet specific eligibility requirements.
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By GlobalDataThe company will be supported by several US insurance providers supplying additional reinsurance, with plans to bring more partners on board soon.
The DFC’s reinsurance facility operates on a rolling basis, insuring losses up to the $20bn threshold at any one time.
Participation is limited to ships that fulfil the project’s set criteria.
Chubb CEO and chairman Evan Greenberg commented: “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.”
Meanwhile, Lloyd’s of London has clarified its position regarding Gulf maritime insurance, reported the Guardian.
Lloyd’s said it continues to offer coverage for hull and cargo in areas including the Persian Gulf, Gulf of Oman and the Strait of Hormuz, provided clients agree on appropriate premium levels reflecting current risk assessments.
Last week, Lloyd’s expanded its list of regions where clients must notify underwriters prior to travel in order to discuss pricing for cover.
