March 11 (Reuters) – Insurance giant Chubb will be the lead partner on the U.S. International Development Finance Corporation’s $20 billion Maritime Reinsurance \u200cPlan aimed at resuming commercial shipping in the Gulf, the agency \u200csaid on Wednesday.<\/p>\n
The U.S.-Israeli conflict has widened sharply in recent days and paralyzed shipping traffic \u200bthrough the Strait of Hormuz, a major global chokepoint in the Gulf.<\/p>\n
Iran said the world should be prepared for oil to hit $200 a barrel as its forces attacked merchant ships on Wednesday in the blockaded Gulf. Meanwhile, U.S. President \u200cDonald Trump has repeatedly tried \u2060to reassure markets this week that the campaign will end soon.<\/p>\n
So far there has been no let-up on the \u2060ground and no sign ships can safely pass through the Strait of Hormuz, where about a fifth of the world’s oil passes, raising the risk of \u200bthe worst \u200bdisruption to energy supplies since the \u200boil shocks of the 1970s.<\/p>\n
Maritime \u200cinsurance covers ships and cargo against risks such as accidents, piracy or conflict, with shipowners paying premiums that rise as insurers assess the likelihood of losses.<\/p>\n
War risk coverage is typically excluded from standard policies and must be purchased separately, often at sharply higher premiums for vessels sailing through conflict zones.<\/p>\n
Without \u200csuch coverage, ships and cargo worth hundreds \u200bof millions of dollars would be exposed to \u200blosses from attacks or seizures, \u200bleaving owners and financiers vulnerable and deterring vessels from \u200csailing through such waters.<\/p>\n
The DFC said \u200bits reinsurance facility will \u200binsure losses up to roughly $20 billion on a rolling basis and insurance will initially focus on hull and cargo.<\/p>\n
“Together, DFC and Chubb \u200bhave identified several American \u200cinsurance companies to provide reinsurance policies behind Chubb and alongside DFC \u200bto expand market capacity,” the agency added.<\/p>\n
(Reporting by Manya Saini in \u200bBengaluru; Editing by Krishna Chandra Eluri)<\/p>\n","protected":false},"excerpt":{"rendered":"March 11 (Reuters) – Insurance giant Chubb will be the lead partner on the U.S. International Development Finance…\n","protected":false},"author":2,"featured_media":30114,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[131],"tags":[240,18261,6305,18262,18263,7142],"class_list":["post-30113","post","type-post","status-publish","format-standard","has-post-thumbnail","category-chubb","tag-chubb","tag-commercial-shipping","tag-gulf","tag-maritime-reinsurance","tag-merchant-ships","tag-strait-of-hormuz"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116212063431280285","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/30113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=30113"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/30113\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/30114"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=30113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=30113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=30113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}