Travelers, Liberty Mutual, Berkshire Hathaway, AIG, Starr and CNA have joined Chubb as partners in the U.S. International Development Finance Corporation's (DFC) new maritime reinsurance plan. Under this program, the DFC will provide $20 billion in rolling coverage, with the insurance carriers providing an additional $20 billion, increasing the total maritime reinsurance facility to $40 billion.

"Reliable insurance capacity matters most in periods of uncertainty," Travelers Chairman and CEO Alan Schnitzer said in a release. "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."

In March, the DFC announced that Chubb would serve as lead underwriter for the program, which was created to provide coverage for commercial vessels passing through the Strait of Hormuz amid ongoing conflict with Iran.

In a previous release, Chubb explained the facility will provide war marine risk insurance for cargo, as well as hull and liability, with coverage also 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.

"Chubb is proud to lead and manage this program in partnership with the United States Government through the U.S. International Development Finance Corporation. 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 said in a release.

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 few details have been released about these requirements.

"DFC is proud to welcome Travelers, Liberty Mutual, Berkshire Hathaway, AIG, Starr, and CNA as additional reinsurance partners for our joint $40 billion Maritime Reinsurance plan," DFC CEO Ben Black said in a release. "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 says it will publicly announce the opening of the application portal for the maritime reinsurance program and provide additional information about the application process soon.

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