The United States has increased its maritime insurance support for ships sailing through the Strait of Hormuz to $40 billion, as part of efforts to bring back shipping activity in the region.
The U.S. International Development Finance Corporation (DFC) said the total reinsurance facility has been expanded from $20 billion to $40 billion.
The initial $20 billion was announced last month, and an additional $20 billion will now be provided by private insurers including Travelers, Liberty Mutual Insurance, Berkshire Hathaway, AIG, Starr, CNA and Chubb.
Chubb will lead the programme as the main underwriter. It will decide pricing and terms, take on risk, issue policies, and manage claims for vessels and cargo that qualify under the scheme.
The plan offers war risk insurance for both ships and cargo. This includes cover for hull damage, protection and indemnity (P&I), and cargo losses linked to conflict-related risks.
The programme has been introduced amid disruptions in the Strait of
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