Wednesday 11/March/2026 – 07:50 PM
She announced Chubb Company One of the largest global insurance companies has launched an insurance plan worth $20 billion as part of a program led by the United States government to provide insurance coverage for ships crossing dangerous sea lanes through the Strait of Hormuz, in light of the escalating risks associated with the war with Iran.
An American company launches a $20 billion insurance plan to protect ships in the Strait of Hormuz
According to Reuters, reports stated that the company will work in cooperation with the US International Development Finance Corporation within a plan worth about $20 billion, aiming to support the resumption of the movement of oil tankers and commercial ships that have been affected by the military escalation in the region.
Oil prices have witnessed a sharp rise since the outbreak of war in late February, with the price of Brent crude exceeding the level of $91 per barrel on Wednesday morning, and prices remained relatively high despite the International Energy Agency announcing its coordination to release 400 million barrels of strategic oil reserves to member states to calm the markets.
The agency’s executive director, Fatih Birol, said that under normal circumstances, the Strait of Hormuz witnesses the passage of about 15 million barrels of oil per day, in addition to about 5 million barrels of other oil products, but this flow has declined significantly despite the efforts made by governments and companies to reduce pressure on supplies.
Navigation movement in the strait faces great challenges, as many ship crews hesitate to cross this sea lane for fear of being exposed to attacks. The British Maritime Trade Operations Center reported that three ships off the Iranian coast were bombed on Wednesday.
The strait connects the Arabian Gulf and the Arabian Sea, and is the main sea lane for exporting oil from the energy-rich region to global markets.
Chubb Chairman and CEO Evan Greenberg said that trade passing through the Strait of Hormuz represents a vital component of the global economy, stressing that providing insurance protection for ships is an essential step to resuming trade flows.
According to an IFC official, Chubb will serve as the main point of contact to coordinate information related to ships and cargo and work with the institution to facilitate the provision of insurance.
The program managed by the Corporation provides reinsurance worth up to $20 billion to cover potential war-related damages, while Chubb will provide direct insurance coverage for shipping companies, with the possibility of other insurance companies participating in the program.
Insurance coverage is expected to include damage to ship hulls, machinery and cargo, in addition to potential environmental damage such as oil spills.
Although insurance coverage is important in reducing financial risks, the continuation of shipping traffic also depends on the security situation in the region. Even with insurance, ships may hesitate to cross if their crew feels a direct threat to their lives.
In the same context, US President Donald Trump warned that Iran would face a strong response if it tried to disrupt shipping traffic through the Strait of Hormuz, stressing that his country was studying various options to ensure the continuation of navigation, including providing military escort for ships.
Rachel Zimba, an analyst at Horizon Engage, a political risk consulting firm, believes that the stability of navigation requires the availability of two basic elements together: the military protection that the US army can provide, and the financial coverage provided by insurance companies.
