Lloyd's, Chubb launch Hormuz war risk cover.
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Lloyd's, Chubb launch Hormuz war risk cover. Announcement comes as the Gulf war risk market stays unsettled. Four months after strikes on vessels in the Strait of Hormuz triggered mass cancellation notices from the International Group of P&I Clubs, private market capacity is beginning to return. Lloyd's of London and Chubb have launched a marine war risk consortium offering up to $200 million of primary capacity separately for hull and P&I risks, plus a further $200 million in dedicated cargo capacity, with Chubb acting as lead underwriter backed by participating Lloyd's syndicates and specialist market partners. The launch arrives alongside - rather than instead of - significant government intervention. The US International Development Finance Corporation launched its own Maritime Reinsurance Plan at $20 billion on 20 March, with Chubb again as lead underwriter, then expanded it to $40 billion two weeks later when Travelers, Liberty Mutual, Berkshire Hathaway, AIG, Starr and CNA joined as reinsurance partners. Chubb's simultaneous role anchoring both the government backstop and the new private consortium is a notable illustration of how the Hormuz capacity gap has been addressed through parallel rather than competing mechanisms. A market still under pressure. The consortium does not signal a return to pre-crisis conditions. Dylan Mortimer, hull war lead at broker Marsh...
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