Kathmandu. Chubb and a group of other insurance companies have announced to contribute an additional $20 billion to the U.S. International Development Finance Corporation’s (DFC) marine reinsurance facility. This will bring the total insurance support of the Hormuz Insurance Facility to $40 billion.
Chubb was named the lead underwriter for DFC’s $20 billion facility to insure vessels crossing the Strait of Hormuz by March 2026. Other insurance companies participating in the additional capacity include Yatri, Liberty Mutual Insurance, Berkshire Hathaway, AIG, Star and CAN.
According to the DFC, the plan aims to “help restart maritime trade through the Strait of Hormuz, stabilize international commerce, and support U.S. and allied businesses that operate in the Middle East during conflicts with Iran.” Chubb will manage the facility, set pricing and terms, take risks, issue insurance policies, and manage all insurance claims.
Marine Reinsurance Scheme to DFC
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- The DFC reinsurance facility will insure losses of approximately $20 billion on a rolling basis.
- This revolving insurance offer will only apply to vessels that meet the eligibility criteria.
- The focus will be on war marine risk insurance, along with cargo for insurance hulls and liabilities. Coverage will be offered for war haul risk insurance, war P&I insurance and war cargo insurance.
This proposal will apply to ships that meet the eligibility criteria set by the US government. This insurance will only be available for ships crossing the Strait of Hormuz under certain conditions. – Agency
