The facility will provide war marine risk insurance for hull & liability as well as cargo. Coverage will be offered for war hull risk insurance, for war P&I insurance and war cargo insurance.
NEW YORK:Chubb, the world’s largest publicly traded property and casualty insurer, has outlined the structure and scope of the maritime insurance facility created in partnership with the U.S. Government through the U.S. International Development Finance Corporation (DFC), which on March 11 announced Chubb as lead underwriter for its $20 billion Maritime Reinsurance plan.
Commercial shipping plays a vital role in the global economy. To help restore market confidence and facilitate the world’s critically important energy and commercial trade, the United States Government, through DFC, is partnering with Chubb to create a maritime insurance facility.
Some Details of the facility include:
-Chubb, acting as lead underwriter, will manage the facility, determine pricing and terms, assume risk, and issue policies for eligible vessels and cargo. Chubb will also manage all claims.
-DFC will help coordinate the consortium of American reinsurers and set certain criteria for ships accessing the program.
-The initiative is a public-private partnership between DFC, Chubb and other name-brand American insurance companies who will act as reinsurers. Participating insurers bring deep underwriting experience in marine and marine war coverage.
-The facility will provide war marine risk insurance for hull & liability as well as cargo. Coverage will be offered for war hull risk insurance, for war P&I insurance and war cargo insurance.
-The offering will apply to vessels that meet eligibility criteria provided by the U.S. Government.
-This insurance will be available to ships transiting the Strait of Hormuz and only under certain conditions.
-The additional American insurance companies will be disclosed in the coming days.