Marine insurers, US step into Strait risk

The U.S. International Development Finance Corporation announced a maritime reinsurance plan to “deploy Maritime Reinsurance, including war risk, in the Gulf region” with up to $20 billion of capacity in a detailed implementation plan released March 6, 2026. (dfc.gov) DFC named Chubb as the lead insurance partner to manage the facility and to work alongside the U.S. Treasury, with Chubb confirmed to assume risk, issue policies and manage claims for eligible vessels. (dfc.gov) Chubb’s public outline states the facility will provide war marine risk insurance for hull and liability as well as war cargo cover, with offerings limited to vessels that meet eligibility criteria set by the U.S. Government. (prnewswire.com) International marine insurers and trade bodies including the International Union of Marine Insurance have issued statements that capacity for cargo, hull, liability and offshore energy lines is being maintained even as war-risk pricing and policy structures are adjusted. (iumi.com) Analysts and S&P Global reported that more than 10 commercial vessels have been targeted in and around the Strait of Hormuz since the conflict escalation began on Feb. 28, 2026, causing crew casualties and effectively paralysing regional crossings. (spglobal.com) DFC said the facility was coordinated with U.S. Central Command and the Treasury, and DFC/Chubb materials note the program will insure losses “up to approximately US$20 billion on a rolling basis,” a structure that requires close operational and eligibility vetting. (dfc.gov) Market signals show London and Lloyd’s-market underwriters continue to offer Middle East cover but at materially higher war-risk premiums, a dynamic brokers such as Gallagher have described while DFC recruitment of U.S. capacity aims to broaden underwriting supply. (insurancejournal.com)