REGULATORY · MARKET STRUCTURE · COMPETITIVE · MIDDLE EAST
US DFC reinsures Gulf maritime losses
Change
The U.S. International Development Finance Corporation will provide reinsurance for Gulf-region maritime losses up to $20 billion.
Why it matters
The reinsurance is capped at $20 billion in covered losses in the Gulf region. Coverage is provided on a rolling basis. Initial coverage focus is hull and machinery insurance and cargo insurance. The program follows an order for DFC to provide political risk insurance and financial guarantees for maritime trade in the Gulf after oil and LNG tanker transit halted in the Strait of Hormuz between Iran and Oman.
Implications
- • Adds reinsurance capacity for hull and machinery and cargo coverage tied to Gulf maritime trade.
- • Provides political risk insurance and financial guarantees for maritime trade in the Gulf under the DFC program.
Who is affected
- • Maritime insurers and reinsurers underwriting hull, machinery, and cargo coverage
- • Oil and LNG tanker operators
- • Oil and gas shippers
Source
Topics
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