Chubb has explained how it will control underwriting, pricing, and claims within a US-backed maritime insurance facility, while federal authorities set eligibility rules and coordinate reinsurance support.
The facility, developed with the US International Development Finance Corporation (DFC), is structured as a public-private arrangement involving Chubb and a group of US-based insurers providing reinsurance capacity. Announced March 11, the program names Chubb as lead underwriter for the $20 billion Maritime Reinsurance plan.
Chubb will manage underwriting operations, including setting pricing and terms, issuing policies for eligible vessels and cargo, and handling claims. The company will also assume risk at the primary level. DFC will coordinate participating reinsurers and establish eligibility requirements for vessels seeking coverage, while providing reinsurance support covering losses up to approximately $20 billion on a rolling basis.
The facility provides war marine risk insurance covering hull and liability, along with cargo. Coverage includes war hull risk, war protection and indemnity (P&I), and war cargo insurance. The program applies only to vessels that meet criteria set by the US government.
Insurance will be available under specified conditions for ships transiting the Strait of Hormuz, a route used for energy shipments and commercial trade. Coverage is limited to war-related marine risks, which are typically excluded from standard marine insurance policies and must be placed separately.
Without such coverage, vessels and cargo face exposure to losses from attacks or seizures, which can deter operators from entering high-risk routes. The facility is structured to support the availability of insurance for eligible vessels operating in the region.
The Strait of Hormuz remains a critical route for global energy flows, with roughly a fifth of the world’s oil passing through the corridor under normal conditions. Traffic has been disrupted by tensions involving Iran, with reported attacks on vessels and reluctance among ship crews to transit the route due to safety concerns.
DFC CEO Ben Black said the program combines private sector underwriting with US government financial backing.
Black said the initiative is intended to support the resumption of energy shipments and commercial trade through the Strait of Hormuz following disruptions linked to tensions involving Iran.
Chubb chairman and CEO Evan Greenberg said the company will lead and manage the program in coordination with the US government and DFC.
Greenberg said providing insurance protection for vessels is necessary for the continuation of trade flows through the route.
The initiative brings together Chubb, DFC, and additional US insurers that will act as reinsurers, contributing marine and war risk underwriting capacity. Several partners have been identified, with further participants expected to be disclosed.
The structure positions Chubb as the central underwriting entity, with reinsurers supporting capacity behind the primary layer. DFC’s role centers on coordinating participation and providing financial backing through reinsurance rather than direct underwriting.
War risk capacity in private markets is often limited in conflict zones, with pricing and availability shifting based on threat levels. The facility introduces a government-supported mechanism designed to address those constraints for eligible vessels without extending beyond defined war-related exposures.
Chubb is the world’s largest publicly traded property and casualty insurer and provides political risk and maritime insurance to multinational corporations, energy companies, and shipping operators. Investor data shows Chubb shares at $322.58, with returns of 12.1% over one year, 80.3% over three years, and 117.8% over five years.
