A new Lloyd’s market consortium has been launched to provide additional marine war risk insurance capacity for vessels and cargo transiting the Strait of Hormuz, Lloyd’s announced.
Chubb will serve as lead underwriter, supported by participating Lloyd’s syndicates and specialist market partners, Lloyd’s said, noting that the consortium brings together leading underwriting expertise with additional Lloyd’s market capacity to support brokers and clients “operating in a complex and fast-moving environment.”
The new marine war risk consortium will issue primary policies for vessels and cargo. It will provide up to $200 million of capacity separately for hull and P&I risks, with an additional $200 million of dedicated cargo capacity.
Chubb also is the lead underwriter for a separate $40 billion maritime insurance facility, first created in March by the U.S. government via the U.S. International Development Finance Corp. (DFC). In April, the plan was increased from $20 billion to $40 billion.
“As a global leader, Chubb is actively working to provide coverage and organize needed capacity as vessels begin moving through the Strait of Hormuz,” commented Evan Greenberg, CEO of Chubb, in a statement. “We are proud to lead this consortium, which provides our brokers and clients with a simple, efficient solution to their insurance needs while highlighting the importance our industry plays in supporting global commerce.”
“We welcome the launch of this new marine war risk consortium, which will increase the depth and breadth of solutions available to brokers and clients as they respond to a complex and evolving situation in the Middle East,” according to Patrick Tiernan, chief executive of Lloyd’s.
“Lloyd’s will work closely with Chubb and participating syndicates to help mobilise additional specialist capacity swiftly and responsibly in support of ships, crews and cargo moving through the Strait of Hormuz,” Tiernan added.
“This is a clear example of the Lloyd’s market’s role in bringing together specialist underwriting expertise, claims capability and global market capacity to support the resilience of marine supply chains.”
Lloyd’s explained that marine war risk insurance provides cover for certain war, terrorism, piracy and related perils affecting vessels and cargo, subject to the terms of the relevant policy.
Photograph: Ships anchored in the Strait of Hormuz near Larak Island, Iran; photo credit: Majid Saeedi/Getty Images Europe
Topics
Excess Surplus
Lloyd’s
Chubb
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