US moves to challenge UK’s long-standing dominance in shipping insurance

Int’l desk: The United States has moved to challenge the United Kingdom’s long-standing dominance in marine and war-risk insurance, particularly for high-risk routes such as the Strait of Hormuz.

In March 2026, the US administration directed the US International Development Finance Corporation to establish a $20 billion government-backed reinsurance facility covering hull, cargo and political risks in the Persian Gulf. The initiative is designed to offer more competitive premiums compared to those charged by Lloyd’s of London amid heightened regional tensions and may include support such as US Navy escorts for commercial vessels.

Lloyd’s, which has maintained a leading role in global marine insurance for more than three centuries and underwrites a significant share of war-risk policies, has faced criticism from some market participants over rising premiums and reduced coverage availability following increased attacks on commercial shipping.

The US initiative aims to restore confidence in maritime trade, stabilise energy supply routes and redirect a portion of insurance premiums toward US-backed providers, including partnerships with insurers such as Chubb Limited.

Lloyd’s has responded by engaging constructively with the proposal while maintaining that it continues to play a central role in the global war-risk insurance market and remains open to collaboration.

According to industry analysts, while the new facility could shift some business away from London, Lloyd’s is expected to retain a significant share of the global market. The long-term impact of the US programme remains uncertain, given potential implementation challenges and limitations in coverage scope.