{"id":124764,"date":"2026-03-16T14:52:20","date_gmt":"2026-03-16T17:52:20","guid":{"rendered":"https:\/\/shipping.einnews.com\/article\/899825239"},"modified":"2026-03-16T14:52:20","modified_gmt":"2026-03-16T17:52:20","slug":"us-20b-reinsurance-plan-unlikely-to-restart-gulf-shipping-without-liability-cover","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/03\/16\/us-20b-reinsurance-plan-unlikely-to-restart-gulf-shipping-without-liability-cover\/","title":{"rendered":"US $20B Reinsurance Plan Unlikely to Restart Gulf Shipping Without Liability Cover"},"content":{"rendered":"<ul class=\"nav nav-tabs tabs tabs-entry\">\n<li class=\"active\"><a href=\"https:\/\/www.insurancejournal.com\/news\/international\/2026\/03\/16\/862075.htm\">Article<\/a><\/li>\n<li><a href=\"https:\/\/www.insurancejournal.com\/news\/international\/2026\/03\/16\/862075.htm?comments\" rel=\"nofollow\">0 Comments<\/a><\/li>\n<\/ul>\n<div class=\"article-content clearfix\">\n<p>The Trump administration\u2019s <a href=\"https:\/\/www.insurancejournal.com\/news\/international\/2026\/03\/09\/860972.htm\" target=\"_blank\" rel=\"noopener\">$20 billion maritime reinsurance program<\/a>, which aims to cover hull &amp; machinery, as well as cargo, is designed to get ships moving through the Strait of Hormuz. But, according to Moody\u2019s Ratings, without coverage of liability risk, the plan isn\u2019t likely to work.<\/p>\n<p>On March 6, the U.S. International Development Finance Corporation (DFC) <a href=\"https:\/\/www.dfc.gov\/media\/press-releases\/dfc-announces-20b-plan-maritime-reinsurance-gulf\" target=\"_blank\" rel=\"noopener\">announced a plan<\/a> to provide reinsurance for vessels sailing through the Strait, aiming to \u201crestore confidence in maritime trade, help stabilize international commerce, and support American and allied businesses operating in the Middle East during the conflict with Iran.\u201d On March 11, the DFC announced that <a href=\"https:\/\/www.insurancejournal.com\/news\/international\/2026\/03\/12\/861536.htm\" target=\"_blank\" rel=\"noopener\">Chubb will be the lead partner<\/a> for the program.<\/p>\n<div class=\"bzn bzn-sized bzn-intext\">\n<ins data-revive-zoneid=\"79\" data-revive-topics=\"liability,reinsurance\" data-revive-companies data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins><\/p>\n<p>var ut = Cookies.get(&#8220;usertopics&#8221;);<br \/>\nvar uc = Cookies.get(&#8220;usercompanies&#8221;);<br \/>\nif (typeof ut !== &#8220;undefined&#8221; || typeof uc !== &#8220;undefined&#8221;) { var adins = document.getElementsByTagName(&#8220;INS&#8221;); if (typeof ut !== &#8220;undefined&#8221;) { adins[adins.length &#8211; 1].setAttribute(&#8220;data-revive-ctopics&#8221;, ut); } if (typeof uc !== &#8220;undefined&#8221;) { adins[adins.length &#8211; 1].setAttribute(&#8220;data-revive-ccompanies&#8221;, uc); }<br \/>\n}<\/p><\/div>\n<p>\u201cI think it\u2019s useful, but it\u2019s probably not enough currently to solve the situation,\u201d because that\u2019s a risk that a lot of shipowners are unlikely to take at this stage, said Benjamin Serra, senior vice president, Financial Institutions for Moody\u2019s Ratings, in a webinar last week, titled \u201c<a href=\"https:\/\/events.moodys.com\/2026-mie27706-insurance-unlocked%ef%bb%bf?mkt_tok=OTYxLUtDSi0zMDgAAAGghZyAyHD-SnDKe6BimO6iVk828VmA-gIf-_rlNB59ir0L6HcNRJZeKJA1iIMPUuc2H6EJHMrNTo0mJqK3CguTIwPk7KdsLarLzH22uWrUqoK2Ssbr\" target=\"_blank\" rel=\"noopener\">Insurance Unlocked: Stability, risks, and what comes next<\/a>.\u201d<\/p>\n<p>Even if a shipowner has insurance and ships are escorted by the U.S. miliary, \u201cit\u2019s probably not a great incentive to try to cross the strait, at least today, as long as the situation is not safe,\u201d he emphasized.<\/p>\n<p>Serra explained that there\u2019s still a risk that an oil tanker could be hit, leading to massive pollution for the beaches of Dubai, for example, which is a big tourist area. Such an event, he warned, would be very costly for the industry.<\/p>\n<p>He described the proposed DFC reinsurance program \u2013 even without liability cover \u2013 as a useful initial step on the part of the U.S. government \u2013 a signal that the U.S. wants to act and reduces the risk that the conflict will continue for 12 months and beyond.<\/p>\n<p>The DFC did not respond to several queries about a possible expansion of the program to include liability risk.<\/p>\n<p>Almost 20 vessels have been attacked thus far during the war, which is a limited number of incidents, Serra said, noting, however, that the loss potential is high, given estimates from the Lloyd\u2019s Market Association that the value of ships currently trapped in the Persian Gulf is at least $25 billion. (<a href=\"https:\/\/www.cbsnews.com\/news\/iran-strait-of-hormuz-attacks-threaten-to-drive-us-gas-prices-to-record-highs-60-minutes-transcript\/\" target=\"_blank\" rel=\"noopener\">News reports indicate<\/a> that 16 vessels had been attacked as of March 15, killing at least eight crew members, while an estimated <a href=\"https:\/\/safety4sea.com\/arsenio-dominguez-20000-seafarers-stranded-in-the-strait-of-hormuz\/\" target=\"_blank\" rel=\"noopener\">20,000 seafarers are stranded<\/a> on their vessels.)<\/p>\n<div class=\"bzn bzn-sized bzn-intext-2\">\n<ins data-revive-zoneid=\"162\" data-revive-topics=\"liability,reinsurance\" data-revive-companies data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins><\/p>\n<p>var ut = Cookies.get(&#8220;usertopics&#8221;);<br \/>\nvar uc = Cookies.get(&#8220;usercompanies&#8221;);<br \/>\nif (typeof ut !== &#8220;undefined&#8221; || typeof uc !== &#8220;undefined&#8221;) { var adins = document.getElementsByTagName(&#8220;INS&#8221;); if (typeof ut !== &#8220;undefined&#8221;) { adins[adins.length &#8211; 1].setAttribute(&#8220;data-revive-ctopics&#8221;, ut); } if (typeof uc !== &#8220;undefined&#8221;) { adins[adins.length &#8211; 1].setAttribute(&#8220;data-revive-ccompanies&#8221;, uc); }<br \/>\n}<\/p><\/div>\n<figure id=\"attachment_862087\" aria-describedby=\"caption-attachment-862087\" class=\"wp-caption alignleft\"><img data-opt-id=758893364  fetchpriority=\"high\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i3.wp.com\/www.insurancejournal.com\/app\/uploads\/2026\/03\/thai-cargo-ship-ablaze-in-strait-of-hormuz-AP-435x580.jpg?ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i3.wp.com\/www.insurancejournal.com\/app\/uploads\/2026\/03\/thai-cargo-ship-ablaze-in-strait-of-hormuz-AP-435x580.jpg?ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i3.wp.com\/www.insurancejournal.com\/app\/uploads\/2026\/03\/thai-cargo-ship-ablaze-in-strait-of-hormuz-AP-435x580.jpg?ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i3.wp.com\/www.insurancejournal.com\/app\/uploads\/2026\/03\/thai-cargo-ship-ablaze-in-strait-of-hormuz-AP-435x580.jpg?ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i3.wp.com\/www.insurancejournal.com\/app\/uploads\/2026\/03\/thai-cargo-ship-ablaze-in-strait-of-hormuz-AP-435x580.jpg?ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i3.wp.com\/www.insurancejournal.com\/app\/uploads\/2026\/03\/thai-cargo-ship-ablaze-in-strait-of-hormuz-AP-435x580.jpg?ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i3.wp.com\/www.insurancejournal.com\/app\/uploads\/2026\/03\/thai-cargo-ship-ablaze-in-strait-of-hormuz-AP-435x580.jpg?ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i3.wp.com\/www.insurancejournal.com\/app\/uploads\/2026\/03\/thai-cargo-ship-ablaze-in-strait-of-hormuz-AP-435x580.jpg?ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i3.wp.com\/www.insurancejournal.com\/app\/uploads\/2026\/03\/thai-cargo-ship-ablaze-in-strait-of-hormuz-AP-435x580.jpg?ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i3.wp.com\/www.insurancejournal.com\/app\/uploads\/2026\/03\/thai-cargo-ship-ablaze-in-strait-of-hormuz-AP-435x580.jpg?ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i3.wp.com\/www.insurancejournal.com\/app\/uploads\/2026\/03\/thai-cargo-ship-ablaze-in-strait-of-hormuz-AP-435x580.jpg?ssl=1&w=1600&resize=1600&ssl=1 1600w\" class=\"size-large wp-image-862087\" fifu-data-src=\"https:\/\/i3.wp.com\/www.insurancejournal.com\/app\/uploads\/2026\/03\/thai-cargo-ship-ablaze-in-strait-of-hormuz-AP-435x580.jpg?ssl=1\" alt width=\"435\" height=\"580\" data-wp-editing=\"1\"><figcaption id=\"caption-attachment-862087\" class=\"wp-caption-text\">This image released by the Royal Thai Navy shows Thai cargo ship, Mayuree Naree, that was struck and set ablaze in the Strait of Hormuz, on Wednesday, March 11, 2026. (Royal Thai Navy via AP)<\/figcaption><\/figure>\n<p>Serra acknowledged that it\u2019s challenging to get reliable data about what is happening in the region. \u201cBut from what we have managed to gather from various press reports, from maritime organizations, from public statements, or even from private discussions that we\u2019ve had with insurance companies that we rate, we understand that there are around 1,000 boats, which are currently trapped in the [Persian] Gulf.\u201d<\/p>\n<p><strong>Read more<\/strong>: <a href=\"https:\/\/www.insurancejournal.com\/news\/international\/2026\/03\/06\/860677.htm\" target=\"_blank\" rel=\"noopener\">Seafarers Can Refuse to Sail Through Mideast Gulf Region, Main Union Says<\/a><\/p>\n<p>In fact, some insurers have estimated that the (worst-case) exposure for these trapped vessels could hit $40 billion or even higher, which Serra said is still a manageable amount for the global insurance and reinsurance industry. He pointed to the example of losses of an estimated $50 billion in 2024 from Hurricane Milton and Helen, which were handily absorbed by the industry.<\/p>\n<p>However, there is a difference between hurricanes and the potential risks to shipping insurers, he cautioned.<\/p>\n<p>\u201cWhen you have a hurricane, the risk is split between a lot of primary insurance companies and also a lot of global reinsurance companies,\u201d he said, noting, however, that marine insurance is actually a much more concentrated market.<\/p>\n<p>Nevertheless, Moody\u2019s doesn\u2019t expect that necessarily to be a threat because the losses can be absorbed by large global insurance companies and reinsurance companies, which are very diversified and have strict limits, Serra said.<\/p>\n<p>But for more specialized players in the marine sector, the impact could be higher and could result in sizable losses, he said.<\/p>\n<p>Further, even if ships are not attacked, marine insurance policies generally include clauses that cover shipowners for a total loss if vessels are trapped for a lengthy period \u2013 typically 12 months \u2013 which could result in substantial losses for the insurance industry, he said.<\/p>\n<p>Serra detailed how insurance companies moved to reduce their exposures by immediately sending notices of cancellation to their policyholders when military strikes started on February 28 \u2013 which is allowed in marine insurance especially for coverage of war risks.<\/p>\n<p>While insurers acted to reduce the risk, this doesn\u2019t necessarily mean they have avoided exposure, he explained. \u201cFor example, if a boat has started its voyage between two harbors, the coverage cannot be cancelled by the insurance company.\u201d<\/p>\n<p>Furthermore, when insurance companies send notices of cancellation, they try to provide some adjusted coverages, with higher prices and reduced guarantees, Serra said.<\/p>\n<p><em>Top photograph: A tanker in the Strait of Hormuz on Feb. 25, 2026. Photo credit: Fadel Senna\/AFP\/Getty Images<\/em><\/p>\n<p><strong>Related:<\/strong><\/p>\n<p class=\"tagtag\"> <span class=\"tagtag\">Topics<\/span> <a href=\"https:\/\/www.insurancejournal.com\/location\/usa\/\" class=\"btn btn-sm btn-primary tagtag\">USA<\/a> <a href=\"https:\/\/www.insurancejournal.com\/reinsurance\/\" class=\"btn btn-sm btn-primary tagtag\">Reinsurance<\/a> <a href=\"https:\/\/www.insurancejournal.com\/liability\/\" class=\"btn btn-sm btn-primary tagtag\">Liability<\/a> <\/p>\n<\/p><\/div>\n<div class=\"article-poll\" data-post=\"862075\">\n<div class=\"article-poll-vote\">\n<p>Was this article valuable?<\/p>\n<\/p><\/div>\n<div class=\"article-poll-feedback voted-no\">\n<p>Thank you! Please tell us what we can do to improve this article.<\/p>\n<p> <textarea><\/textarea> <button type=\"submit\" class=\"submit\" disabled>Submit<\/button> <button class=\"cancel\">No Thanks<\/button>  <\/div>\n<div class=\"article-poll-feedback voted-yes\">\n<p>Thank you! <span class=\"percent\"><\/span>% of people found this article valuable. Please tell us what you liked about it.<\/p>\n<p> <textarea><\/textarea> <button type=\"submit\" class=\"submit\" disabled>Submit<\/button> <button class=\"cancel\">No Thanks<\/button>  <\/div>\n<div class=\"article-poll-more-articles\">\n<p class=\"thank-you-text\">Here are more articles you may enjoy.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<p><strong><a href=\"https:\/\/blockads.fivefilters.org\"> <\/a><\/strong> <a href=\"https:\/\/blockads.fivefilters.org\/acceptable.html\"> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8230; &amp; machinery, as well as <span class=\"match\">cargo<\/span>, is designed to get ships &#8230; the Royal Thai Navy shows Thai <span class=\"match\">cargo<\/span> ship, Mayuree Naree, that was &#8230; hurricanes and the potential risks to <span class=\"match\">shipping<\/span> insurers, he cautioned. \u00e2\u0080\u009cWhen you &#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-124764","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/124764","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=124764"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/124764\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=124764"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=124764"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=124764"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}