The U.S. International Development Finance Corporation (DFC) and Chubb have announced six additional American insurance partners that will provide reinsurance for DFC's Maritime Reinsurance plan: Travelers, Liberty Mutual Insurance, Berkshire Hathaway, AIG, Starr, and CNA.
On top of DFC’s $20 billion in rolling coverage, Chubb and these new partners will provide an additional $20 billion, bringing the total Maritime Reinsurance facility to $40 billion. The plan is designed to deliver on President Trump’s directive to help restore maritime trade through the Strait of Hormuz, stabilize international commerce, and support American and allied businesses operating in the Middle East during the conflict with Iran.
“Reliable insurance capacity matters most in periods of uncertainty,” said Travelers Chairman and CEO Alan Schnitzer. “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.”
Maritime Reinsurance Details
The reinsurance facility will insure losses up to approximately $40 billion on a rolling basis: $20 billion from DFC and $20 billion from Chubb and the additional partners.
Chubb, acting 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 facility will provide War Marine Risk Insurance for Hull & Liability as well as Cargo. Coverage will be offered for War Hull Risk Insurance, for War P&I Insurance, and War Cargo Insurance.
Eligibility Qualifications
DFC and its interagency partners will determine if a vessel is eligible to participate in the reinsurance facility based on the information collected from applicants, a sanctions and Know Your Customer vetting process, and other information obtained and deemed relevant by DFC and its interagency partners.
Application Information
Below is a non-exhaustive list of key information that will be collected from every applicant. DFC will publicly announce the opening of the application portal and provide additional information concerning the application process soon.
•Vessel name and operator
•Origin and destination country of the vessel
•IMO number
•Flag of the vessel
•Information as to the vessel operator and crew
•Major beneficial owners of the vessel and domiciles thereof
•Registered owner of the vessel and domicile thereof
•Types, quantity, origin, destination, and value of cargo
•Owner of cargo and domicile of owner
•Information as to lenders financing the vessel.