From Barron's April 3:
Several big-name firms joined the U.S.’s reinsurance plan aimed at limiting losses to shippers who transport oil and other cargo through the Strait of Hormuz. As a result, any losses will be insured up to $40 billion, double the original amount announced in March.
Travelers, Liberty Mutual, Berkshire Hathaway,, Starr, and CNA have partnered with the U.S. International Development Finance Corporation to insure eligible vessels for damage to their hulls and cargo, as well as for liability involving injuries to people or other property.
The added coverage includes new protection specifically related to wartime conditions in the form of war hull risk insurance, protection and indemnity, and cargo insurance. This additional insurance wasn’t included in the original announcement.
“This public-private partnership brings stability to maritime trade at a critical moment,” Travelers CEO Alan Schnitzer said.
Chubb, which was the first insurer to join the program on March 11, will insure $20 billion of the losses along with the new partners. The DFC will insure the rest. Chubb will be the lead underwriter managing all claims. It will also “determine pricing and terms, assume risk, and issue policies for eligible vessels and cargo,” the DFC said.
Notably missing from the announcement is what makes boats eligible for coverage. What’s more, the program hasn’t yet commenced. The DFC said that an application portal will open soon....
....MUCH MORE
