Insights
Financial Times article on new US marine war facility
Posted 19/05/2026 – Insights
In a recent article, the Financial Times highlighted that the US Development Finance Corporation marine war facility has not yet written any insurance policies to any vessels in the Strait of Hormuz. The facility was initially sponsored by US insurer Chubb but now has a number of US insurers supporting the programme increasing its potential coverage to $40bn. The programme was introduced under the premise that vessels will be provided a naval escort, but to date, no such escorts have been organised.
Alpha Comment
We believed that the announcement of the Development Finance Corporation’s facility with US insurers might have been difficult to enact. This recent article from the FT is of interest as it shows the difficulties in the restrictions of needing a naval escort. Lloyd’s is the preeminent market for marine war business and underwriters continue to provide war insurance in the region.
