The U.S. International Development Finance Corporation (DFC) has launched a $20 billion reinsurance program to restore commercial shipping through the Strait of Hormuz. This federal initiative responds to private war-risk insurers canceling policies or sharply increasing premiums following recent military escalations.
The program acts as a federal backstop for private insurers by covering catastrophic losses for hull, machinery, and cargo. The DFC designated U.S. insurer Chubb as the lead partner to underwrite these policies.
However, the London-based insurance market has expressed skepticism regarding the plan. Global maritime coverage leaders argue that physical safety remains the primary obstacle for shipping companies, regardless of insurance availability.