Chubb, the Swiss-based global insurer with offices in Bermuda, has outlined the structure of the US-supported plan to provide a maritime insurance backstop to encourage shipping to restart in the Middle East.

The US International Development Finance Corporation, which is overseeing the $20 billion plan, and the US Treasury, announced on March 11 that Chubb had been selected as lead underwriter.

Chubb said today the facility will provide war marine risk insurance for hull and liability, as well as cargo, with coverage to be offered for war hull risk insurance, war P&I insurance, and war cargo insurance.

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 initiative is a public-private partnership between DFC, Chubb and a consortium of US reinsurers. The DFC will help coordinate the reinsurers and set certain criteria for ships accessing the programme.

The offering will apply to vessels that meet eligibility criteria provided by the U.S. Government. This insurance will be available to ships transiting the Strait of Hormuz and only under certain conditions.

Chubb added that the additional participating insurance companies will be disclosed in the coming days.