The United States has introduced a $20 billion government-backed maritime reinsurance programme to ensure uninterrupted commercial shipping through the strategic Strait of Hormuz. The scheme, designed to mitigate rising conflict-related risks in the region, appoints the American insurer Chubb as the lead underwriter.
Announced on 11 March 2026 by the U.S. International Development Finance Corporation (DFC), the Maritime Reinsurance Plan provides a government-supported financial safety net for vessels operating in high-risk waters. It covers hull and machinery, cargo, and other war-related maritime hazards.
Heightened tensions in the Persian Gulf—marked by an increased threat of missile and drone attacks—have restricted coverage availability in the private insurance market, driving premiums to unprecedented levels. Many insurers have responded by limiting their exposure, creating significant disruptions in maritime trade.
The programme, established under presidential direction and administered jointly by the U.S. Department of the Treasury and U.S. Central Command, offers rotational coverage up to $20 billion. By doing so, it aims to stabilise insurance access and restore confidence among shipping companies.
The Strait of Hormuz is a critical global energy corridor, handling approximately one-fifth of all seaborne oil exports worldwide. Recent security concerns have led to a decline in commercial traffic, underscoring the importance of this initiative for global energy markets.
Under the plan, Chubb will issue policies as the lead insurer, while additional U.S.-based insurers will contribute reinsurance capacity to the programme. The DFC highlighted that Chubb’s expertise in marine and political risk insurance, supported by U.S. government backing, will ensure that shipping operators continue to have access to essential coverage.
Chubb Chairman and CEO Evan Greenberg emphasised the significance of the programme: “Shipping through the Strait of Hormuz is crucial to global energy supply. This initiative enhances maritime safety and reinstates confidence for shipowners and insurers alike.”
Officials anticipate that the combination of the reinsurance backstop and enhanced regional security measures will gradually increase the movement of oil, gasoline, liquefied natural gas (LNG), and jet-fuel carriers through the strait.
Overview of the U.S. Maritime Reinsurance Programme
| Component | Description |
|---|---|
| Coverage Limit | Up to $20 billion (rotational basis) |
| Lead Insurer | Chubb |
| Programme Administrators | U.S. Treasury Department & U.S. Central Command |
| Launch Date | 11 March 2026 |
| Insured Risks | Hull & machinery, cargo, war-related maritime risks |
| Target Region | Persian Gulf, Strait of Hormuz |
| Purpose | Sustain commercial shipping; stabilise maritime insurance market |
| Eligible Vessels | Oil, gasoline, LNG, and jet-fuel carriers |
The programme represents a decisive step by the U.S. to safeguard a vital maritime route, stabilise global energy flows, and bolster confidence in a volatile region.