Marsh, Aon in Talks With US on Insuring Tankers in Hormuz

Marsh and Aon Plc, two of the world’s largest insurance brokers, are in talks with the US government on a plan to help insure tankers navigating the Strait of Hormuz energy chokepoint.

President Donald Trump said on Tuesday the US International Development Finance Corporation would offer insurance “at a very reasonable price” to help ensure the flow of energy and other commercial trade in the Gulf.

“We have spoken with the DFC earlier today and offered our assistance with the potential facility,” said Marcus Baker, global head of marine and cargo at Marsh. He added that it “might take a few weeks to work out the details” of any program, but that it’s too soon to give an estimate for a timeframe.

Aon has also been discussing a potential program with the DFC in recent days, according to people with knowledge of the matter, asking not to be identified as they’re not authorized to speak publicly. A representative for Aon declined to comment.

Vessel traffic through Hormuz has essentially halted, causing oil stockpiles to start backing up in producing countries and choking off energy exports from across the Persian Gulf. While insurance might help, shipowners and their crews will nevertheless still be nervous about transiting the vital waterway until hostilities cease.

London-based Aon has worked with the DFC to build insurance capacity and new capital investment in Ukraine following Russia’s invasion. Marsh helped arrange cover for ships handling Ukrainian exports through Black Sea corridors, in a facility backed by the Ukrainian government.