Key facts
- Lloyd's of London has launched a new $400 million marine war risk consortium.
- Chubb is the lead underwriter for the facility.
- The consortium will offer up to $200 million for hull and P&I risks and $200 million for cargo.
- The initiative aims to support shipping through the Strait of Hormuz.
- The launch follows a peace deal between the US and Iran.
Lloyd's of London has launched a new $400 million war risk facility to provide additional insurance capacity for vessels and cargo transiting the Strait of Hormuz. Chubb will serve as the lead underwriter for the consortium, which aims to support brokers and clients operating in a complex environment.
The new facility will issue primary policies and offers up to $200 million for hull and protection and indemnity (P&I) risks, with an additional $200 million dedicated to cargo capacity. Lloyd's is a major global supplier of war insurance, covering a significant portion of the world's war business.
This initiative follows the signing of an initial peace deal between the US and Iran, aimed at ending the war and reopening the Strait of Hormuz, a critical route for global oil and gas transport. The closure of the Strait during the conflict had a substantial impact on the global economy, driving Brent Crude prices to a peak of $126 per barrel in March.
Despite the peace agreement, shipping firms are awaiting robust evidence of safety before resuming full transit through the Strait. Industry representatives have stated that a consistent string of safe passages for tankers is necessary to restore confidence.