Beazley, a leading specialty insurer, has announced its intention to launch a new marine war consortium, to provide up to $1bn of Lloyd's capacity, comprising $500m for Hull War and $500m for cargo war, that will be complementary to the existing capacity available in the market.
In a statement, Beazley said that it would lead the consortium, supported by mainly Lloyd’s syndicates and other London company markets. The consortium will continue to develop with additional scalable third-party capital.
The consortium is designed to support the maritime sector with additional war insurance capacity in the complex and evolving situation in and around the Strait of Hormuz.
Coverage by the consortium will be offered to vessels and their cargoes whilst transiting the Strait of Hormuz. It will be in line with Beazley’s risk appetite and in compliance with all global sanctions.
The Lloyd’s and London Marine War market has to date continued to successfully deliver solutions to enable global trade throughout the ongoing war in Iran, but this additional capacity will ensure that as the situation evolves, the market has the additional insurance support readily available to support the resilience of global supply chains.
Beazley CEO Mr Adrian Cox said that the marine market continues to play a vital role in maintaining continuity of trade amidst ongoing conflict. “This consortium demonstrates the agility of the market to respond to the needs of global supply chains,” he added, continuing, “We have been able to swiftly coalesce our market’s combined expertise to deliver a highly specialist solution that will assist in keeping global trade moving.”
Lloyd’s CEO Mr Patrick Tiernan said, “I welcome the launch of this timely and pragmatic Beazley-led consortium. While insurance continues to be available for ships transiting the region, it is prudent to have facilities in place for changes in demand in the future.
“The consortium demonstrates the Lloyd’s model at its best: capital and expertise aligning, not only to address immediate pressures, but to anticipate future requirements.”