The US International Development Finance Corporation (DFC) has announced that it would provide marine reinsurance in the Gulf region for losses of up to approximately $20bn on a rolling basis.
In a statement, DFC said that its CEO Ben Black and US Treasury Secretary Scott Bessent have announced agreement on a detailled implementation plan approved by President Donald Trump to deploy maritime reinsurance, including war risk, in the Gulf region.
The announcement, made last Friday, marks a key milestone toward the rapid implementation of President Trump’s directive to utilise DFC’s innovative financial toolkit to safeguard the continued flow of trade, to restore confidence in maritime trade and stabilise international markets.
DFC said, “In close coordination with CENTCOM (United States Central Command), this plan will restore confidence in maritime trade, help stabilise international commerce, and support American and allied businesses operating in the Middle East during the conflict with Iran.”
Mr Black said, “Working alongside CENTCOM, DFC coverage will offer a level of security no other policy can provide. We are confident that our reinsurance plan will get oil, gasoline, LNG, jet fuel, and fertiliser through the Strait of Hormuz and flowing again to the world.”
Some details of the maritime reinsurance scheme are:
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DFC reinsurance facility will insure losses up to approximately $20bn on a rolling basis.
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This revolving insurance offering will apply only to vessels that meet “the criteria”. No details are available yet on these requirements.
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Insurance will focus on Hull & Machinery and Cargo to start.
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DFC has identified best-in-class, preferred American insurance partners.
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DFC and Treasury are coordinating closely with CENTCOM on next steps in the implementation of this plan.
In an earlier statement on 3 March, DFC said that it is ready to mobilise its Political Risk Insurance and Guarantee products to stabilise international commerce and support American and allied businesses operating in the Middle East during this period of conflict with the Iranian regime.
It is closely monitoring how certain sectors—maritime trade and energy in particular—are being impacted by the current conflict in the Middle East and the Iranian regime’s actions. DFC will offer support to commercial shipping charterers, shipowners, and key maritime insurance providers to minimise market disruptions and help ensure the free flow of goods and capital.
President Trump ordered DFC on 3 March to provide political risk insurance and financial guarantees for maritime trade in the Gulf after oil and liquefied natural gas tanker transit had ground to a halt in the Strait of Hormuz off Iran, through which 20% of global oil moves daily, before the hostilities started. Mr Trump also said that the US Navy could escort ships in the Gulf.
DFC, established in 2019 under President Trump, is the international investment arm of the US. Government. DFC partners with the private sector to advance US foreign policy and strengthen national security by mobilising private capital around the world. DFC invests across strategic sectors including critical minerals, modern infrastructure, and advanced technology.
DFC will continue to provide additional information as it becomes available. Businesses and financial institutions seeking access to its Maritime Reinsurance product should contact DFC directly at maritime@dfc.gov.