The US International Development Finance Corporation, or DFC, and Chubb said six more American insurers have joined the Maritime Reinsurance plan. The new partners are Travelers, Liberty Mutual, Berkshire Hathaway, AIG, Starr, and CNA.
The expansion adds another $20 bn in support on top of DFC’s existing $20 bn in rolling coverage. With Chubb and the added insurers now in place, the facility reaches $40 bn in total capacity.
The program is built to carry out President Donald Trump’s directive to help restore maritime trade through the Strait of Hormuz, support international commerce, and back American and allied businesses operating in the Middle East during the conflict with Iran.
DFC chief executive officer Ben Black said the agency is pleased to add Travelers, Liberty Mutual, Berkshire Hathaway, AIG, Starr, and CNA as reinsurance partners in the joint $40 bn facility.
He said the group, together with Chubb, brings deep marine and marine war underwriting experience, which strengthens efforts to restore confidence in maritime trade.
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
DFC CEO Ben Black
Chubb chief executive officer Evan Greenberg said the company is proud to lead and manage the program with the US government through DFC. He said trade moving through the Strait of Hormuz holds a major role in the global economy, and vessels need insurance protection for trade flows to resume.
The commerce passing through the Strait of Hormuz plays a vital role in the global economy, and providing vessels with insurance protection is essential for resuming trade flows
Chubb CEO Evan Greenberg
Travelers chairman and chief executive officer Alan Schnitzer said dependable insurance capacity matters most in periods of uncertainty. He said the public-private partnership brings stability to maritime trade at a critical moment and gives Travelers a chance to contribute underwriting strength and financial capacity alongside the US government and industry peers.
“Reliable insurance capacity matters most in periods of uncertainty,” said Travelers Chairman and CEO Alan Schnitzer. “This public-private partnership brings stability to maritime trade at a critical moment, and we’re pleased to contribute our expertise and financial strength alongside the United States Government through DFC and a strong group of industry partners to support global commerce and U.S. economic interests.”
Liberty Mutual Insurance chairman, president, and chief executive officer Tim Sweeney said the company joined the facility to help support the restoration of maritime commerce, drawing on its position in specialty insurance and risk advisory.
As a market leader in specialty insurance and risk advisory services, we have joined the mobilization of this facility to help support the restoration of maritime commerce
Liberty Mutual Insurance Chairman, President, and CEO Tim Sweeney
Ajit Jain, vice chairman of Berkshire Hathaway insurance operations, said the company is pleased to support Chubb and DFC in the initiative. He also said the participating reinsurers are showing how the insurance sector responds when important needs hit the market.
CNA chairman and chief executive officer Douglas Worman said the program shows how public and private partners come together to address real-world risk. He said CNA is contributing marine underwriting expertise alongside other large insurers.
AIG president and chief executive officer-elect Eric Andersen said the US government’s effort to provide insurance capacity for vessels using the Strait of Hormuz is important for global commerce and stability. He said AIG is backing the plan with risk solutions meant to support the route’s continued operation.
Under the structure of the facility, total insured losses will be covered on a rolling basis up to roughly $40 bn, with $20 bn from DFC and $20 bn from Chubb and the added insurers.
Chubb will act as lead underwriter. It will manage the facility, set pricing and terms, assume risk, issue policies for eligible vessels and cargo, and handle claims.
Coverage will include war marine risk insurance for hull and liability, along with cargo. The facility will offer war hull risk insurance, war P&I insurance, and war cargo insurance.
DFC and its interagency partners will decide whether a vessel qualifies for the facility. That review will rely on information provided by applicants, sanctions screening, Know Your Customer checks, and other information DFC and partner agencies consider relevant.
DFC said it will soon announce when the application portal opens and provide more detail on the process. Information required from applicants will include the vessel name and operator, origin and destination country, IMO number, vessel flag, details on the operator and crew, major beneficial owners and their domiciles, the registered owner and domicile, cargo type and value, cargo ownership, and details on lenders financing the vessel. A lot of screening, yes, though that fits the route and the risk.
