Lloyd's and U.S. Discuss Gulf Maritime Insurance Plan

The Lloyd’s of London market is currently engaging with the United States government’s International Development Finance Corporation (DFC) regarding a plan to provide political risk insurance and guarantees for maritime trade in the Gulf. Market officials stated on Thursday that the engagement aims to ensure Lloyd’s remains the global leader in war risk insurance during periods of regional conflict. > Lloyd’s is engaging constructively with the U.S. Development Finance Corporation and relevant stakeholders, with a clear focus on ensuring that the Lloyd’s market continues to lead as the global centre of excellence for war risk insurance. The Lloyd’s Market Association (LMA), which represents underwriting businesses, welcomed the involvement of the American administration in securing these vital trade routes. LMA CEO Sheila Cameron noted that since March 1, there have been at least 40 transits of vessels through the Strait of Hormuz, highlighting the ongoing activity despite the risks. > There remain approximately 1,000 vessels, approximately half of which are oil and gas tankers, with an aggregate hull value exceeding $25 billion in the Persian/Arabian Gulf and surrounding waters. Cameron added that the vast majority of these vessels are insured in the London market and that their coverage remains in place. This engagement follows reports that insurance broker Marsh met with officials to explore solutions for maintaining maritime trade. President Donald Trump stated that the U.S. Navy could begin escorting oil tankers through the Strait of Hormuz if necessary and ordered the DFC to provide political risk insurance guarantees. Earlier this week, the London marine insurance market expanded the area in the Gulf it deems high risk as regional tensions continue to escalate.