By Elias Schisgall
Chubb will assume risk, issue policies and manage all claims for a $20 billion maritime insurance facility to insure ships traveling through the Strait of Hormuz, as soaring oil prices increase pressure on the U.S. to reopen the waterway.
Insurance giant Chubb was named lead underwriter on the facility earlier this month. The facility will provide war marine risk insurance for hull and liability in addition to cargo, Chubb said Friday.
The facility is being set up in partnership with the U.S. International Development Finance Corporation and other U.S. insurance companies that will operate as reinsurers. DFC will help coordinate the consortium of U.S. reinsurers participating in the initiative, and the additional partners are expected to be announced in the coming days, Chubb said.
Chubb, as lead underwriter, is slated to manage the facility and determine pricing and terms, it said.
The insurance will be available to ships traveling through the Strait of Hormuz under certain conditions and meeting eligibility criteria set by the government, Chubb said.
Iranian forces have halted ship traffic through the key strait since early this month, following the joint U.S.-Israeli attacks on Iran in late February. The effective closure has left oil prices skyrocketing, with Brent crude recently changing hands at $109.91 a barrel after briefly touching $119 Thursday. Prior to the conflict, it had hovered around the $70 level.
The U.S. announced a stepped-up operation to reopen the strait on Thursday, sending low-flying attack jets to hit Iranian ships and Apache helicopters to shoot down drones, according to The Wall Street Journal.
Write to Elias Schisgall at elias.schisgall@wsj.com
(END) Dow Jones Newswires
March 20, 2026 13:04 ET (17:04 GMT)
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