Chubb to lead $20b US shipping reinsurance plan for Strait of Hormuz

Desk report: Chubb has been selected as the lead US insurer for a $20 billion government-backed maritime reinsurance programme aimed at restoring commercial shipping through the Strait of Hormuz amid escalating regional tensions involving Iran.

The US International Development Finance Corporation (DFC) announced on March 11, 2026, that Chubb will serve as the primary partner and lead underwriter for the Maritime Reinsurance Plan, a federal initiative designed to address the sharp rise in war-related insurance risks in the Persian Gulf.

The programme provides a government backstop for losses linked to war-related perils, including risks affecting hull and machinery, cargo and war-related maritime risks, where private market capacity has tightened significantly due to heightened threats from missile, drone and other attacks targeting vessels in the region.

Developed under a presidential directive and coordinated with the US Treasury and US Central Command, the facility provides coverage of up to approximately $20 billion on a rolling basis. The initiative is intended to help revive commercial traffic through the Strait of Hormuz, a strategic chokepoint that handles roughly 20% of global oil trade but has seen shipping activity decline following recent security escalations.

Under the structure of the programme, Chubb will act as the lead insurer issuing policies to eligible vessels, while additional US insurers are expected to provide supporting reinsurance capacity behind the facility to broaden market participation.

The DFC said the partnership combines Chubb’s underwriting expertise in marine, political risk, and property-casualty insurance with the US government’s financial backing, helping to stabilise insurance availability for shipping companies operating in the Gulf.

The initiative follows a sharp increase in war-risk premiums in recent weeks, which has led some insurers to limit exposure or raise prices significantly, disrupting maritime trade in the region.

Chubb chairman and CEO Evan Greenberg said maintaining commercial transit through the Strait of Hormuz is critical to global energy supply chains, adding that the partnership is designed to support the safe movement of vessels while helping restore confidence among shipowners and insurers.

US officials said the reinsurance backstop, combined with enhanced regional security measures, is expected to gradually support the return of commercial traffic carrying oil, gasoline, LNG, jet fuel and other critical commodities through the Gulf despite ongoing geopolitical tensions.