UK-based Lloyd’s has formed a new market consortium, led by Swiss insurer Chubb, to provide additional marine war risk insurance capacity for the Strait of Hormuz.
The facility, which became accessible to brokers and clients from late last week, draws together Lloyd’s syndicates and specialist market partners to deliver primary marine war risk cover.
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Access is conditional on underwriting criteria, sanctions screening and applicable regulatory requirements.
Under the arrangement, up to $200m of capacity is available for hull and protection and indemnity (P&I) risks, with a separate $200m dedicated to cargo.
Chubb is leading on underwriting, supported by participating Lloyd’s syndicates and specialist market partners.
Chubb CEO Evan Greenberg said: “As a global leader, Chubb is actively working to provide coverage and organise needed capacity as vessels begin moving through the Strait of Hormuz.
“We are proud to lead this consortium, which provides our brokers and clients with a simple, efficient solution to their insurance needs while highlighting the importance our industry plays in supporting global commerce.”
Cover is distributed via brokers and assessed on an individual risk basis, subject to policy terms, conditions and exclusions.
Marine war risk insurance of this type protects vessels and cargo against losses arising from war, terrorism, piracy and related perils, within the scope of relevant policy terms.
Any coverage extended through the consortium remains contingent on applicable sanctions regimes, export controls and legal or regulatory restrictions.
The launch comes as shipping operators and cargo owners continue to contend with elevated risk conditions in one of the world’s most strategically significant maritime corridors.
Lloyd’s CEO Patrick Tiernan added: “Lloyd’s will work closely with Chubb and participating syndicates to help mobilise additional specialist capacity swiftly and responsibly in support of ships, crews and cargo moving through the Strait of Hormuz.”
