Lloyd’s offers $200m capacity for Hormuz hull risks

The facility also includes $200m for protection and indemnity risks and $200m for cargo.

Lloyd’s has announced the launch of a new marine war risk consortium aimed at providing additional insurance capacity for vessels and cargo transiting the Strait of Hormuz amidst heightened geopolitical risks in the Middle East.

The consortium will be led by Chubb and supported by participating Lloyd’s syndicates and specialist market partners. 

It is designed to offer additional marine war risk cover for shipowners, cargo interests and brokers operating in the region.

The facility will issue primary policies covering vessels and cargo. 

It will provide up to $200m of capacity each for hull and protection and indemnity (P&I) risks, alongside a further $200m of dedicated cargo capacity.

Evan Greenberg, CEO of Chubb, said the insurer was working to provide coverage and additional capacity as vessels continue to transit the Strait of Hormuz. He said the consortium offers brokers and clients a streamlined solution for their insurance needs whilst supporting global trade.

Patrick Tiernan, CEO of Lloyd's of London, said the consortium would expand the range of insurance solutions available to brokers and clients navigating an increasingly complex situation in the Middle East.