economy
March 11, 2026
Chubb set as main U.S. insurer for Persian Gulf shipping amid Iran war
The insurance giant will work with the U.S. International Development Finance Corporation to help backstop shipping.
TL;DR
- Chubb will be the lead underwriter for a U.S. government program insuring ships through the Strait of Hormuz.
- The program is a $20 billion plan by Chubb and the U.S. International Development Finance Corporation (DFC) to address risks from the Iran war.
- Oil prices have spiked due to the disruption of passage through the Strait of Hormuz, which normally sees 15 million barrels of oil daily.
- Ship crews are hesitant to use the route due to fear of attacks, with three ships struck by projectiles recently.
- The DFC program offers reinsurance to cover approximately $20 billion in damages, including hulls, machinery, cargo, and environmental damage.
- President Trump has issued warnings to Iran regarding shipments through the Strait of Hormuz and considered taking control of the waterway.
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