The US International Development Finance Corporation (DFC) and the US Treasury have finalised an implementation strategy to provide maritime reinsurance that includes coverage for war risks in the Gulf region.
The move follows approval from President Donald Trump.
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The initiative, developed in consultation with US Central Command (CENTCOM), is intended to support shipping operations and international trade amid ongoing tensions with Iran.
Under the plan, the DFC will offer a reinsurance facility capable of covering losses totalling up to $20bn on a rolling basis.
This scheme applies only to vessels that meet specific eligibility requirements.
Initial coverage will prioritise hull and machinery and cargo insurance.
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By GlobalDataPreferred US insurance partners have been identified to participate in the programme.
Coordination between the DFC, the Treasury and CENTCOM will continue as the plan moves towards implementation.
DFC CEO Ben Black said: “I am grateful to President Trump and Secretary Bessent for their support and approval of DFC’s plan to restore confidence in maritime trade and stabilise international markets. Working alongside CENTCOM, DFC coverage will offer a level of security no other policy can provide. We are confident that our reinsurance plan will get oil, gasoline, LNG [liquefied natural gas], jet fuel and fertiliser through the Strait of Hormuz and flowing again to the world.”
Earlier this month, the DFC confirmed its willingness to provide political risk insurance and guarantees for maritime trade, with particular attention to energy shipments passing through Gulf waters.
The measure covers all shipping lines, following instructions from President Trump to provide support at what was described as a “very reasonable price”.
This step aims to maintain maritime trade flows and supporting business activity for US and allied companies operating in the region.
Prior to the DFC’s announcement, private insurers remained active in the region, reported Bloomberg.
The Lloyd’s Market Association reported that insurance offers are still being extended to vessels transiting the area.
Additionally, broker Arthur J. Gallagher & Co. said that the London insurance market is prepared to provide coverage for ships navigating the strait.
