US Doubles Ship Insurance To $40 Billion To Keep Oil Flowing Through Hormuz

Amid the escalating tension in West Asia that has severely affected the Strait of Hormuz, the United States has doubled its reinsurance guarantee commitment for ships willing to transit the Strait to $40 billion and added new insurance partners, including American International Group (AIG) and Berkshire Hathaway.

The US International Development Finance Corporation (DFC) had announced a $20 billion reinsurance program last month.

The corporation on Friday stated that Travelers Insurance, Liberty Mutual, Berkshire Hathaway, AIG, Starr, and CNA will join Chubb Insurance in providing an additional $20 billion in reinsurance support for its maritime infrastructure.

In a statement, DFC CEO Ben Black said, “These leading U.S. insurers bring deep underwriting

expertise in marine and maritime war insurance, strengthening our efforts to restore confidence in seaborne trade.” The agency also noted it will jointly determine with its insurance partners which vessels qualify for reinsurance coverage. To qualify, applicants must provide information including the vessel’s port of origin and destination, the primary beneficial owner and their location, the cargo owner and their location, and the lender financing the vessel.