Kathmandu. The $40 billion U.S.-backed maritime reinsurance facility for the Strait of Hormuz would only be activated if U.S. military convoys meet special conditions on entry. <\/p>\n
Evan Greenberg, president and CEO of Chubb, said the reinsurance program will only operate if the hazardous environment is considered suitable for military convoy deployments. “The government wanted to support transportation through the Gulf. The government wanted to open it up when it felt it could support U.S. military convoys. That hasn’t happened yet. \u2019<\/p>\n
This reinsurance facility, designed to provide insurance protection for ships navigating the Strait of Hormuz, plays a major role in ensuring the continuity of global trade. “The waterways through waterways brought value to commerce, and their smooth operation was critical to the global economy,” Greenberg said. Therefore, insurance coverage is considered important for the continuous flow of international transport. \u2019<\/p>\n
The facility was created in response to the transport blockade caused by the ongoing conflict between the US and Iran. This has hampered transportation activities in the region. <\/p>\n
The U.S. International Development Finance Corporation (DFC) initially partnered with Chubb as a major underwriter. Its initial coverage was $ 20 billion. Since then, the coverage has grown to $40 billion. It is working with partners such as Chubly Travelers, Liberty Mutual, Berkshire Hathaway, AIG, Star and CNA. Coverage includes war risks in hull, liability (P&I) and cargo. <\/p>\n
It is responsible for setting pricing, conditions, policies, and claims related to the program. However, its activation depends on the presence of US Navy convoys. This reduces the risk by 50 percent. Despite the great coverage, no premium income has been generated so far. <\/p>\n
According to Greenberg, the U.S. government sought support for transportation, the military, and the broader economy. “This adds to the strategic importance of the program for both the insurance industry and global trade,” he said. \u2013Agency<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. The $40 billion U.S.-backed maritime reinsurance facility for the Strait of Hormuz would only be activated if U.S. military convoys meet special conditions on entry. Evan Greenberg, president and CEO of Chubb, said the reinsurance program will only operate if the hazardous environment is considered suitable for military convoy deployments. “The government wanted to […]<\/p>\n","protected":false},"author":16,"featured_media":292963,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45159,45102],"tags":[],"class_list":["post-297322","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-news-en","category-reinsurance-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/297322","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=297322"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/297322\/revisions"}],"predecessor-version":[{"id":297323,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/297322\/revisions\/297323"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/292963"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=297322"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=297322"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=297322"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}