Chubb set as main U.S. insurer for Persian Gulf shipping amid Iran war
The insurance giant will work with the U.S. International Development Finance Corporation to help backstop shipping.
TL;DR
- Chubb will be the lead underwriter for a U.S. government program insuring ships through the Strait of Hormuz.
- The program is a $20 billion plan by Chubb and the U.S. International Development Finance Corporation (DFC) to address risks from the Iran war.
- Oil prices have spiked due to the disruption of passage through the Strait of Hormuz, which normally sees 15 million barrels of oil daily.
- Ship crews are hesitant to use the route due to fear of attacks, with three ships struck by projectiles recently.
- The DFC program offers reinsurance to cover approximately $20 billion in damages, including hulls, machinery, cargo, and environmental damage.
- President Trump has issued warnings to Iran regarding shipments through the Strait of Hormuz and considered taking control of the waterway.