Updated
Updated · Insurance Journal · Jun 19
Lloyd's Launches $400 Million Hormuz War Risk Cover, Led by Chubb
Updated
Updated · Insurance Journal · Jun 19

Lloyd's Launches $400 Million Hormuz War Risk Cover, Led by Chubb

3 articles · Updated · Insurance Journal · Jun 19

Summary

  • $400 million in new Lloyd’s marine war risk capacity will cover vessels and cargo moving through the Strait of Hormuz, with Chubb leading the consortium.
  • The facility offers primary policies with up to $200 million each for hull and P&I risks, plus another $200 million dedicated to cargo.
  • Lloyd’s said the consortium is meant to help brokers and clients navigate fast-changing Middle East threats, including war, terrorism and piracy affecting ships, crews and cargo.
  • Chubb already leads a separate U.S.-backed maritime insurance facility that was expanded in April to $40 billion, underscoring rising demand for protection on key shipping routes.

Insights

If physical danger stops ships, not lack of insurance, how will this new $400M facility actually reopen the Strait of Hormuz?
With a $40 billion US-backed facility already active, why is this separate, smaller Lloyd's consortium necessary for the same crisis?
As drone warfare creates a 'new baseline' for risk, can insurance alone truly secure the future of global maritime trade?