The US International Development Finance Corporation (DFC) has doubled its Gulf maritime facility capacity to $40bn, with the addition of six new insurers.
The new participating firms are Travelers, Liberty Mutual Insurance, Berkshire Hathaway, AIG, Starr and CNA.
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The facility executes President Trump’s directive to secure maritime trade through the Strait of Hormuz and stabilise global commerce amid ongoing regional tensions.
Chubb was named the lead underwriter for the initiative in March. It will run the facility, set terms and pricing, take on risk, issue policies for qualifying vessels and cargo, and administer claims.
The firm, alongside its six new partners, have pledged $20bn to the facility, in addition to the $20bn in rolling coverage from the DFC.
Cover will be available for war-related marine risks, including hull and liability and cargo. Products will include insurance for war risks to hulls, war-related protection and indemnity exposures, and war risks affecting cargo.
DFC, working with other US government bodies, will decide whether vessels qualify for the scheme.
Decisions will be based on information supplied by applicants, sanctions and Know Your Customer checks, and any other material DFC and its partners consider relevant.
Applicants will be asked to provide data including vessel name and operator, origin and destination, International Maritime Organization number, flag, details of the operator and crew.
They are also required to provide major beneficial owners and their domiciles, registered owner and domicile, as well as type, quantity, origin, destination and value of cargo, information on the cargo owner and domicile, and details of lenders with exposure to the vessel.
DFC plans to issue a separate notice to confirm when the application portal will open and to set out further guidance on the process.
DFC CEO Ben Black said: “DFC is proud to welcome Travelers, Liberty Mutual, Berkshire Hathaway, AIG, Starr, and CNA as additional reinsurance partners for our joint $40 billion Maritime Reinsurance plan.
“Along with Chubb, these leading American insurers bring deep underwriting experience in marine and marine war coverage, strengthening our efforts to help restore confidence in maritime trade.”
