The United States has unveiled a $20 billion government-backed maritime reinsurance programme aimed at maintaining uninterrupted commercial shipping through the strategic Strait of Hormuz. The initiative seeks to safeguard vessels against escalating regional conflicts, with the American insurance company Chubb appointed as the lead underwriter.
The announcement was made on 11 March 2026 by the U.S. International Development Finance Corporation (DFC). Chubb will serve as the principal partner and lead underwriter under the newly established Maritime Reinsurance Plan, providing comprehensive coverage for war-related risks.
Rising threats in the Persian Gulf, including missile and drone attacks, have substantially reduced coverage availability in the private insurance market. The reinsurance programme addresses these gaps by offering a government-backed financial backstop covering hull and machinery, cargo, and other war-related maritime risks.
Established under presidential guidance, the programme is administered jointly by the U.S. Department of the Treasury and U.S. Central Command. Coverage is available on a rotational basis, extending up to $20 billion, thereby stabilising the insurance environment for shipping companies operating in high-risk waters.
The Strait of Hormuz remains one of the world’s most critical energy transit routes, handling roughly 20% of global seaborne oil exports. However, recent security tensions have caused a measurable decline in vessel traffic.
Under the programme, Chubb will issue policies for eligible vessels as lead insurer, while other U.S. insurers will participate by providing additional reinsurance capacity. According to the DFC, Chubb’s extensive experience in marine and political risk insurance, combined with U.S. government financial support, will ensure sustained access to coverage for shipping operators.
Recent weeks have seen war-risk premiums surge, prompting many insurers to limit exposure or raise rates, disrupting maritime commerce. The new reinsurance scheme aims to restore confidence among shipowners and insurers while gradually increasing the passage of oil, gasoline, liquefied natural gas (LNG), and jet-fuel carriers.
Chubb Chairman and CEO Evan Greenberg emphasised the programme’s importance, stating: “Commercial shipping through the Strait of Hormuz is vital to global energy supply. This initiative strengthens maritime security and restores confidence for both shipowners and insurers.”
Key Details of the U.S. Maritime Reinsurance Programme
| Feature | Details |
|---|---|
| Total Coverage | $20 billion (rotational basis) |
| Lead Underwriter | Chubb |
| Administered by | U.S. Treasury Department & U.S. Central Command |
| Launch Date | 11 March 2026 |
| Covered Risks | Hull & machinery, cargo, war-related maritime risks |
| Regional Focus | Persian Gulf, Strait of Hormuz |
| Purpose | Maintain uninterrupted commercial shipping; stabilise insurance market |
| Target Vessels | Oil, gasoline, LNG, and jet-fuel carriers |
U.S. officials expect that with the combined effect of the reinsurance backstop and enhanced regional security measures, commercial shipping in the Strait of Hormuz will gradually return to normal levels, safeguarding a critical artery of global energy trade.