Chubb-led maritime reinsurance facility expands to $40bn
The United States International Development Finance Corporation and Chubb have named six additional American insurance partners that will provide reinsurance for DFC’s maritime reinsurance plan.
The reinsurers are Travelers, Liberty Mutual Insurance, Berkshire Hathaway, AIG, Starr and CNA.
On top of DFC’s $20 billion in rolling coverage, Chubb and these new partners will provide an additional $20 billion, bringing the total maritime reinsurance facility to $40 billion.
Chubb announced the public-private partnership between themselves, DFC and a consortium of US reinsurers last month.
The plan is designed to deliver on US President Donald Trump’s directive to help restore maritime trade through the Strait of Hormuz, stabilise international commerce and support American and allied businesses operating in the Middle East during the conflict with Iran.
DFC welcomed the additional reinsurance partners for their joint $40 billion maritime reinsurance plan.
“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 chief executive Ben Black said.
Chubb CEO Evan Greenberg said 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.
“Reliable insurance capacity matters most in periods of uncertainty,” Travelers chairman and CEO Alan Schnitzer said this public-private partnership brings stability to maritime trade at a critical moment.
Liberty Mutual insurance chairman, president and CEO Tim Sweeney said: “As a market leader in speciality insurance and risk advisory services, we have joined the mobilisation of this facility to help support the restoration of maritime commerce.”
Ajit Jain, vice-chairman of Berkshire Hathaway-Insurance Operations commended all the reinsurers for stepping up to demonstrate how their industry could help to meet important needs as they arise.
“This initiative demonstrates how public and private partners can come together to address real‑world risk,” said Douglas Worman, chairman and CEO of CNA.
Eric Andersen, president and CEO-elect of AIG said the US Government’s mission of providing critical insurance capacity for vessels operating in the Strait of Hormuz through the DFC is vital to supporting global commerce and stability.
The reinsurance facility will insure losses up to approximately $40 billion on a rolling basis: $20 billion from DFC and $20 billion from Chubb and the additional partners.
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.
The facility will provide war marine risk insurance for hull and liability as well as cargo. Coverage will be offered for war hull risk insurance, for war protection and indemnity insurance and war cargo insurance.
•For the full press release see Related Media
You must be Registered or to post comment or to vote.
