Lloyd’s of London and insurer Chubb (CB) have unveiled a $400m marine war risk insurance consortium targeting vessels and cargo transiting the Strait of Hormuz.
The new facility is designed to break a significant logjam in global shipping caused by the conflict in Iran, which effectively shut down one of the world’s most critical maritime passages.
Chubb will serve as lead underwriter, supported by participating Lloyd’s syndicates and specialist market partners, combining underwriting expertise with broader Lloyd’s market capacity.
The consortium will issue primary policies covering both vessels and cargo transiting the strategically vital waterway, offering comprehensive protection across multiple risk categories.
Up to $200m of capacity will be made available separately for hull and protection and indemnity risks, with an additional $200m of dedicated cargo capacity also on offer.
Lloyd’s of London is the world’s largest supplier of war insurance, writing between 70 and 80 per cent of all war business globally, making it a natural anchor for the new arrangement.
Patrick Tiernan, chief executive of Lloyd’s, explained: “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.”
Evan Greenberg, chief executive of Chubb, added, “As a global leader, Chubb is actively working to provide coverage and organise needed capacity as vessels begin moving through the Strait of Hormuz. 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.”
The conflict in Iran had a severe impact on global energy markets, with the Strait of Hormuz responsible for transporting the majority of the world’s oil and gas supplies, pushing Brent Crude to a peak of $126 per barrel in March.
The facility launch follows the signing of an initial peace deal between the presidents of the United States and Iran, with Donald Trump declaring the agreement “all signed” as G7 leaders work to finalise the remaining details.
Trump also announced that the Strait of Hormuz will remain open, offering a degree of reassurance to shipowners and cargo operators weighing the risks of returning to the route.
However, Peter Aylott, director of policy at the UK Chamber of Shipping, said shipping firms would need to see a “fairly robust string of evidence” that tankers stuck in the Persian Gulf could leave safely before they would have the confidence to sail through the Strait.
The new consortium represents a significant step toward restoring normal commercial shipping operations through one of the world’s most economically important maritime chokepoints.