Chubb has released information about the structure of the new Gulf maritime insurance facility it has created in partnership with the United States government.
Earlier this month, the U.S. International Development Finance Corporation (DFC) announced that Chubb will serve as lead underwriter for a new $20 billion maritime reinsurance plan. This program is meant to provide coverage for commercial vessels passing through the Strait of Hormuz amid ongoing conflict in the Middle East. Now, Chubb has shared details about the structure of a maritime insurance facility.
"DFC is pleased to partner with Chubb, one of the world's leading insurance companies, to help get energy and trade flowing again through the Strait of Hormuz," DFC CEO Ben Black said in a release when Chubb's involvement in the program was announced. "DFC's Maritime Reinsurance plan combines Chubb's premier underwriting expertise with the financial commitment of the U.S. Government. With today's announcement, we are one step closer to restoring market confidence and resuming energy and commercial trade disrupted by the conflict with Iran."
According to a release from Chubb, the facility will provide war maritime risk insurance for cargo, as well as hull and liability, with coverage offered for war hull risk, war P&I and war cargo.
Chubb, acting as the lead underwriter, will manage the maritime insurance facility, determine pricing and terms, assume risk and issue policies for eligible vessels and cargo. Chubb will also be responsible for managing all claims.
DFC will assist in coordinating participating U.S. reinsurers and possess the authority to set certain criteria for ships entering the program. Only vessels that meet eligibility requirements from the U.S. government will be allowed to participate in the maritime war coverage program, though no details have been released about these requirements.
"Chubb is proud to lead and manage this program in partnership with the United States Government and the U.S. International Development Finance Corporation," Evan Greenberg, chairman and CEO of Chubb, said in a release when the partnership was announced. "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."
Additional participating U.S. insurance companies will reportedly be announced soon.
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