The US International Development Finance Corporation (DFC) and insurer Chubb on Friday announced six additional American reinsurance partners, expanding their maritime reinsurance facility to $40 billion in rolling coverage for vessels operating through the Strait of Hormuz amid the ongoing conflict with Iran.
The new partners – Travelers, Liberty Mutual Insurance, Berkshire Hathaway, AIG, Starr, and CNA — will contribute $20 billion in combined coverage alongside Chubb, matching DFC’s existing $20 billion commitment.
Chubb will serve as lead underwriter, managing the facility, setting pricing and terms, assuming risk, issuing policies, and handling all claims. Coverage will include war hull risk insurance, war P&I insurance, and war cargo insurance for eligible vessels and cargo.
DFC CEO Ben Black said the new partners “bring deep experience” in marine and war risk coverage. “Along with Chubb, these leading American insurers bring deep underwriting experience in marine and marine war coverage, strengthening our efforts to help restore confidence in maritime trade,” Black said.
Chubb CEO Evan Greenberg framed the initiative around the economic importance of the waterway. “The commerce passing through the Strait of Hormuz plays a vital role in the global economy, and providing vessels with insurance protection is essential for resuming trade flows,” Greenberg said.
Travelers chairman and CEO Alan Schnitzer cited the significance of the timing. “This public-private partnership brings stability to maritime trade at a critical moment,” Schnitzer said.
Liberty Mutual Insurance chairman, president, and CEO Tim Sweeney said the firm joined to help restore maritime commerce, while Berkshire Hathaway vice chairman of insurance operations Ajit Jain commended participating reinsurers for “stepping up to demonstrate how our industry can help to meet important needs as they arise.”
AIG president and CEO-elect Eric Andersen said the effort would protect a key global trade corridor. “AIG is pleased to support this effort with risk solutions that will safeguard the resiliency of this important global trade route,” Andersen said.
CNA chairman and CEO Douglas M. Worman added that the initiative demonstrated how the public and private sectors can work together to address real-world risks.
The announcement comes amid a severe disruption to global shipping. Tensions escalated following joint US and Israeli military strikes on Iran in February, which included the killing of Iran’s supreme leader Ali Khamenei. In response, Iran’s Islamic Revolutionary Guard Corps issued warnings prohibiting vessel passage through the Strait of Hormuz, leading to an effective halt in shipping traffic.
Roughly 27% of the world’s maritime trade in crude oil and petroleum products passes through the Strait, according to the US Naval Institute. Brent crude jumped 8% from $71.32 per barrel on Feb. 27, 2026, to $77.24 per barrel on March 2, 2026, and has since broken the $100 per barrel mark as the conflict continued.
Beginning March 1, 2026, a number of major industry insurers issued notices of cancellation for war risk insurance coverage for vessels traveling through the Persian Gulf, Gulf of Oman, and Strait of Hormuz. David Osler, finance editor at Lloyd’s List, told Euronews that before the fighting, typical rates for Strait of Hormuz coverage were 0.15% to 0.25% of hull value for a one-week policy, but since the conflict began, quotes have reached as high as 5% to 10% of hull value.
DFC said it will soon announce the opening of an application portal. Vessel eligibility will be determined through a sanctions review, a Know Your Customer vetting process, and other relevant information gathered by DFC and its interagency partners. Applicants will be required to submit details including the vessel name, flag, IMO number, cargo information, and ownership records.
