{"id":37463,"date":"2026-03-24T02:54:06","date_gmt":"2026-03-24T02:54:06","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/37463\/"},"modified":"2026-03-24T02:54:06","modified_gmt":"2026-03-24T02:54:06","slug":"chubb-outlines-structure-of-20b-gulf-reinsurance-facility-now-including-liability-cover","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/37463\/","title":{"rendered":"Chubb Outlines Structure of $20B Gulf Reinsurance Facility, Now Including Liability Cover"},"content":{"rendered":"

Chubb outlined the structure of the new $20 billion maritime reinsurance facility<\/a>, created to provide marine war risk insurance for ships sailing through the Strait of Hormuz \u2014 which has been effectively closed to shipping since the start of the war with Iran.<\/p>\n

The maritime insurance facility was created by the U.S. government via the U.S. International Development Finance Corp. (DFC), which on March 11 announced Chubb<\/a> as lead underwriter for its $20 billion reinsurance plan.<\/p>\n

Originally, the DFC program was focused on hull & machinery and cargo \u2014 but Chubb announced on Friday, March 20 that it has been expanded to include liability.<\/p>\n

Moody\u2019s said recently that exclusion of liability would be a deal-killer<\/a> for most shipowners moving crude oil through the Strait of Hormuz, due to the massive risk of pollution liability and cleanup if a vessel was hit by a mine or drone.<\/p>\n

A Moody\u2019s representative said additional details about this incarnation of the DFC program are not yet available and therefore the ratings agency wouldn\u2019t comment. A Lloyd\u2019s spokesperson also would not comment on the program. The International Underwriting Association (IUA), which represents the London company market, would not offer a comment.<\/p>\n

It is unclear how effective the facility will prove to be as ship traffic through the Strait of Hormuz remains disrupted, with only a few Iran-affiliated vessels being able to transit the waterway, according to news reports. Military experts have warned that commercial shipping is unlikely to restart<\/a> without a cease fire.<\/p>\n

Chubb listed the details of the facility, which include:<\/p>\n

Chubb, acting as lead underwriter, will manage the facility, determine pricing and terms, assume risk, and issue policies for eligible vessels and cargo. Chubb will also manage all claims.
\nThe initiative is a public-private partnership between DFC, Chubb, and other name-brand American insurance companies who will act as reinsurers. \u201cParticipating insurers bring deep underwriting experience in marine and marine war coverage,\u201d said Chubb. (Editor\u2019s note: It is unclear whether Lloyd\u2019s and the London market could participate in the program as reinsurers).
\nDFC will help coordinate the consortium of American reinsurers and set certain criteria for ships accessing the program. (Editor\u2019s note: AIG did not respond to a query about the requirements needed to access the cover).
\nThe facility will provide war marine risk insurance for hull & liability as well as cargo. Coverage will be offered for war hull risk insurance, for war P&I insurance and war cargo insurance.
\nThe offering will apply to vessels that meet eligibility criteria provided by the U.S. government.
\nThis insurance will be available to ships transiting the Strait of Hormuz and only under certain conditions.
\nThe additional American insurance companies will be disclosed in the coming days.<\/p>\n

\n Topics
\n Reinsurance<\/a>
\n Liability<\/a>\n <\/p>\n

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