The Indian government is reportedly considering a $1.5 billion fund to provide reinsurance cover to Indian vessels travelling through conflict zones, such as the Strait of Hormuz, which until Tuesday was closed to most international shipping due to the US-Israeli Iran conflict.
A news report from Reinsurance News, an industry-focused online medium, disclosed that reports indicated that the fund was intended to encourage insurance companies to provide coverage for Indian vessels in conflict-affected waters, with the reinsurance facility expected to support insurers in managing the sharply higher costs during this period.
According to the online medium, the reports, which cited two senior government officials, noted that GIC Re will likely manage the fund, which will complement measures already announced by the Reserve Bank of India and the Directorate General of Foreign Trade to support sectors affected by the Iran conflict.
It reported that in related news, the U.S International Development Finance Corporation (DFC) and Chubb recently revealed that six additional American insurance partners that will provide reinsurance for the DFC’s Maritime Reinsurance Plan as including Travelers, Liberty Mutual Insurance, Berkshire Hathaway, AIG, Starr and CAN.
- Advertisement -
Under the expanded structure, Chubb and the newly announced partners will contribute an additional $20 billion in capacity alongside the existing $20 billion in rolling coverage, increasing the total Maritime Reinsurance facility to $40 billion.
